Your business and the PPSA – Don’t Risk it!
The Personal Property Securities Act 2009 (Cth) (PPSA) has been in effect for over 6 years, yet many businesses are still unaware of the existence and the wide-reaching impact of the PPSA.
In our article '60 Million Reasons to Perfect Your Security Interest', we discussed the failure of General Electric International Inc (GE) (an American company) to comply with the requirements under the PPSA and the subsequent loss by GE of approximately $60 million worth of assets.
GE (like many other business owners who have felt the impact of the PPSA) made one critical mistake – they didn't know the PPSA applied to their business.
PPSA - What is it?
The PPSA regulates security interests in personal property, which is essentially all property – other than land, fixtures to land and some statutory rights.
The PPSA sets out a complex and highly technical statutory regime for the creation, priority and enforcement of security interests in personal property.
The first question for every business owner is whether or not the PPSA applies to their business. This is of critical importance as a failure to comply with the PPSA could result in loss of valuable assets even if you own them! (like in GE's case).
Typical transactions caught by the PPSA
Typical transactions which may give rise to a security interest in personal property include:
- sale of goods on a retention of title basis;
- leasing (eg leasing of goods, motor vehicles, plant and equipment etc);
- hire purchases;
- mortgages (eg mortgages over goods, motor vehicles, plant and equipment etc);
If your business is engaged in any of the above transactions it is very important that you comply with the requirements under the PPSA and perfect your security interest. This can be done by ensuring your transaction documents comply with the PPSA and you register a financing statement on the Personal Property Securities Register within the statutory timeframes.
How can we help?
If your business is engaged in any of the above transactions and you are unsure of your rights and obligations under the PPSA, please do not hesitate to contact us.
P: 9394 1036 | E: email@example.com
P: 9394 1034 | E: firstname.lastname@example.org
P: 9394 1072 | E: email@example.com
- Charity and Not-for-Profit Organisation
- Competition and Consumer Law
- Compliance and Corporate Governance
- Corporate and Commercial
- Dispute Resolution
- Elder Law
- Estate Planning
- Insolvency, Bankruptcy and Restructuring
- Intellectual Property
- Personal Property Securities Act
- Workplace Relations and Safety
Commitment-Phobe or Flexi-Free? Choosing the perfect match in a Fair Work World, plus #MeToo – the latest from the Courts in Sexual Harassment Claims
We will navigate the options in light of recent court and Fair Work Commission decisions on casual employment. In particular, we will take a look at how recent court decisions have characterised casual employment and we will also discuss the inception of automatic conversion clauses, which shift casual employees to permanent employment and with limited rights to refuse the change.
The festive season is fast approaching and at a time where the #MeToo movement has put sexual harassment laws and its prevention at the front and centre of public debate. We will also take a look at some recent court developments in sexual harassment claims and discuss what you can do to ensure your business takes steps to protect employees from sexual harassment at work.Read More
Modern families are becoming more complex in their structure and dynamic. As a result, there has been a steady increase in estate litigation, in particular, claims against estates by family members seeking further provision. It is therefore important to review your estate plan to ensure these complexities are addressed and to ensure, where possible, the risk of litigation is mitigated.Read More