30 AUGUST 2012
As you should now be well aware, the Personal Property Securities Act 2009 (PPSA) commenced on 30 January 2012 which introduced, among other reforms, a significant change in the law relating to the leasing of goods. Whereas previously a hirer of certain goods could rely on a clause in the contract providing that they remain the owner of the goods to protect its interest as an owner, the PPSA now requires the hirer, in certain circumstances, to register its interest in the goods otherwise it may lose its interest in the goods to a third party.
Some of the first major victims of the changes to the law brought in by the PPSA were suppliers to the consumer electronics retailer WOW Sight and Sound, who went into receivership shortly after the commencement of the PPSA. Since going into receivership, some unsecured creditors of WOW have been advised that they cannot recover the goods they leased to WOW unless their interest has been registered on the Personal Property Securities Register.
While the PPSA provides for a grace period until 30 January 2014 for businesses to register their interest, it is important to be aware that this grace period only applies to goods supplied before 30 January 2012. In some cases, registration of the relevant interest must be done within 15 business days of the supply of the goods to obtain all relevant protection of the interest.
If you have not already conducted a review into the impact of the PPSA on your business, we recommend that you do so as soon as possible to ensure all relevant protection is in place, particularly if your business has leased goods to others after 30 January 2012. We would be pleased to assist you in this review process and to advise on best practice systems and procedures that may be employed by your business to register your interests in-house.
You are a valued Kinneally Miley contact, for more information related to this Legal Update please contact us.
[contactsbox] [leftcolumn]Contact Associate: Michael Coe
Direct Telephone : 07 3210 5709
Mobile Telephone : 0408 983 876
[email protected]