PPSR Update – Key Developments for Business Owners

Personal Property Securities Register PPSR Business Lawyers QLD

I recently delivered a seminar in conjunction with National Australia Bank (“NAB”) in relation to recent developments regarding the Personal Property Securities Register (“PPSR”).

The update was provided in light of recent court cases in this area, as well as the impending expiry of the transitional period on 30 January 2014.

Some of the key points I emphasised to seminar attendees are as follows:

  1. The introduction of the Personal Property Securities Act 2009 (Cth) (“the Act”) on 30 January 2012 placed a far greater emphasis on “possession” of personal property, irrespective as to “ownership”. Business owners need to be diligent in ensuring they are aware of not only who holds possession of the assets in which they retain title, but also the length of time the assets spend out of their possession and control. This can have significant consequences under the Act.
  2. Registration on the PPSR is non-negotiable. Recent cases such as Maiden Civil (P&E) Pty Ltd & Ors v Queensland Excavation Services Pty Ltd & Ors [2013] NSWSC 852 have applied the principals of existing New Zealand Case Law to find that a failure to register an interest on the PPSR can have disastrous consequences, particularly in the circumstance of insolvency of the would-be grantor.
  3. Transitional registrations not perfected on the PPSR before 30 January 2014 will lose their priority status. The next few months present an opportunity for business owners to conduct a “stock take” of the assets they have which are subject to a security interest arrangement. If no current registration exists, registration should be made immediately in order to perfect the interest. If the interest is transitional, registration needs to be made before 30 January 2014 in order to maintain its priority status.

A full copy of my seminar paper  is available for download here. Please contact me if you have any questions regarding this post.

Tagged in: , , , , , , , , , , ,

You may also be interested in:

6 Things You Can Expect When Declaring Bankruptcy

Declaring bankruptcy should be your last resort when you are faced with financial difficulties, whether as an individual or as a business owner. It is not exactly a “Get Out of Jail Free” card, as it comes with many adverse consequences, which may significantly impact your financial standing over a considerable period. So what consequences continue reading

How do you determine if a company is insolvent?

The answer to the question “How do you determine if a company is insolvent?” is important because there are serious consequences for a director if debts are incurred after the company has become insolvent, including civil penalties, compensation proceedings and criminal charges. However, it is often difficult to know when a company has crossed the continue reading

What to do if you receive an ATO Director Penalty Notice

Did you know that company directors may potentially become personally liable for unremitted Pay As You Go (PAYG) deductions and Superannuation Guarantee Charges (SGCs)? The Australian Taxation Office (ATO) has significant powers to recover a company’s unpaid liabilities personally through its directors and may issue a Director Penalty Notice (DPN). This article focuses on the continue reading

Liability Limited by a scheme approved under professional standards legislation | Website by VA