Gadens Lawyers has an enviable reputation of
providing cost-effective practical solutions for 'business as
usual' processes. Read on to see solutions to the PPS
Many Australian businesses – including yours!
– could be significantly affected by changes to the law
of ownership impacting all kinds of property, except real estate
and a few other exceptions.
If your business ever parts with possession of goods before
payment in full, you are affected by the new Personal
Properties Securities Act (PPS Act) which is
expected to commence in May 2011.
You are a supplier of building equipment. Under your
business terms, title does not pass until payment. Under existing
law, the builder could not sell those goods and give good title to
the purchaser. If a liquidator is appointed to the builder, the
builder cannot sell the goods. After the PPS Act commences, the
opposite will be the case unless you, as unpaid vendor, have
notified your interest on the PPS register. You could lose your
You lease equipment to a mining company. Under the existing
law, there is no requirement to register or notify the existence of
that arrangement in any registries. Once the PPS Act commences, you
will need to notify the lease on the PPS register. Otherwise, you
could lose your title to the equipment if, for example, a
liquidator is appointed to the lessee or if the lessee sells the
equipment to a third party.
Although financiers are most impacted by this new law, there is
significant impact on many other businesses. Gadens
Lawyers provides four solutions:
face-to-face and written training for your business
an outsourced service to document and notify your PPS
provision of documents and procedures to enable your company to
document and register PPS interests in-house.
review of your current structure to identify transitional
issues, including which interests you should notify on the PPS
You need to start considering how you will deal with PPS today.
Contact Gadens Lawyers to discuss solutions for your business.
Contact the partner you normally deal with or Jon Denovan, PPS Team
Leader on 02 9931 4927.
More information about PPS
PPS legislation replaces over 70 pieces of legislation and over
35 registries. It provides uniform Australian law and therefore is
expected to provide significant business efficiencies. The PPS
regime completely replaces the existing scheme for taking security
over everything except real estate and a few other exceptions.
PPS establishes a register for recording interest in virtually
all forms of property including:
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