The Personal Property Securities Act 2009 (PPSA)
commenced operations on 30 January 2012 and implements fundamental
changes to the rules affecting ownership of 'personal
property' in Australia.
One area of significant change affects clients who have multiple
entities. Often these arrangements provide for the
lease/hire/rental/licence of property (such as trademarks or plant
and equipment or vehicles) from one entity to another.
It is also quite common for clients that own business goodwill
to licence a related entity to operate the business as an asset
Under the PPSA, an owner of 'personal property' who
allows a third party to use that property will need to register the
fact that they are the owner of the property on the PPS
If they do not and the entity that has possession of the
property goes into liquidation, the liquidator will effectively be
able to claim ownership of the property in priority to the actual
The registration process is not entirely straightforward and, if
it is not done properly, the owner will be at risk of a third party
such as a liquidator claiming ownership of the goods.
Many of these non-arms length arrangements have not been
properly documented (or are not documented at all). As a starting
point it will be advisable to make sure all lease or licence
arrangements in respect of personal property assets are documented
and that the interest created by the documents are registered under
We can assist in documenting these arrangements and providing
advice and guidance on how to effectively register interests under
the PPSA regime.
On 9 February 2012, Cooper Grace Ward Lawyers will run a
complimentary presentation and workshop-style session during which
we will discuss and case study how to identify transactions that
are impacted, and how to prepare you and your clients for the
changes required. Please
click here for more information and to register to attend.
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The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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