In continuing my post I forgot to counter on the final...

In continuing my post I forgot to counter on the final justification reply from the board that stated "loan transactions are not regulated by chapter 10"-- there is clear definition in the corporations act regarding what constitutes financial benefit in a related party transaction and there is no grounds for attempting to state that there is ambiguity about this in the corporations act 2001

The next section after 228(which defines a related party) in the corporations act -- is section 229 - that section  describes a financial benefit that may be material for these related party transactions-- the Corporations Act inclusion and scope is much broader than just asset didposal or takeover and leaves no leeway for manipulation;---229(3)a clearly includes loans as financial benefit---the full section is included below for the boards and its legal teams education

CORPORATIONS ACT 2001 - SECT 229
Giving a financial benefit
  (1)  In determining whether a financial benefit is given for the purposes of this Chapter:

  (a)  give a broad interpretation to financial benefits being given, even if criminal or civil penalties may be involved; and

  (b)  the economic and commercial substance of conduct is to prevail over its legal form; and

  (c)  disregard any consideration that is or may be given for the benefit, even if the consideration is adequate.

  (2) Giving a financial benefit includes the following:

  (a)  giving a financial benefit indirectly, for example, through 1 or more interposed entities;

  (b)  giving a financial benefit by making an informal agreement, oral agreement or an agreement that has no binding force;

  (c)  giving a financial benefit that does not involve paying money (for example by conferring a financial advantage).

  (3)  The following are examples of giving a financial benefit to a related party:

  (a)  giving or providing the related party finance or property;

  (b)  buying an asset from or selling an asset to the related party;

  (c)  leasing an asset from or to the related party;

  (d)  supplying services to or receiving services from the related party;

  (e)  issuing securities or granting an option to the related party;

  (f)  taking up or releasing an obligation of the related party.