The grace period for the Personal Properties Securities Act finished this February, and the collapse of Forge has highlighted just how unprepared businesses are. The legislation was introduced two years ago to streamline over 20 state and territory property security registers but has been widely misunderstood or ignored by the business community.
Many businesses, particularly plant and equipment hire companies, have lost titles to financed machinery following the Forge collapse, as their security interests were not correctly registered on the PPSR. Despite owning the machines, these businesses do not have a legal claim to them if the company in liquidation has possession of the machines and the security interest has not been recorded or has been recorded incorrectly.
Click Here to view a case summary of a local WA hire business that failed to take proper precautions registering its interest.
Case summary provided by Simon Read of EDX.
For further information about the Personal Properties Securities Act and how it affects you, go to www.ppsr.gov.au or call us on (08) 9322 1229.