Two recent court decisions have highlighted the perils
associated with failing to register interests on the Personal
Property Security Register (PPSR), or failing to correctly register
interests. In both cases, the mistakes proved very expensive, with
property worth millions vesting in administrators and receivers and
In the matter of OneSteel Manufacturing Pty Ltd
(administrators appointed)  NSWSC 21
In one recent case, the financier Alleasing Pty Ltd leased plant
and equipment (for $4 million per annum) to its customer OneSteel
Manufacturing Pty Ltd. Alleasing registered its interests on the
PPSR but incorrectly used OneSteel's ABN instead of its ACN
when registering. Administrators were appointed to OneSteel and
successfully argued that the registrations were defective. Property
in the plant and equipment vested in the administrators and
Alleasing lost its interest in the leased property. You can read
more about the case
(Note: The outcome would have been different if OneSteel was a
corporate trustee. Where a customer is the trustee of a trust, the
ABN of the trust and not the ACN of the customer should be used
Forge Group Power Pty Limited v General Electric
International Inc  NSWSC 52
In another recent case, General Electric International Inc
leased turbines (valued at US$44 million) to Forge Group Power Pty
Limited. General Electric lost its interest in the turbines because
of its failure to register that interest on the PPSR. The lessor
was unsuccessful in arguing that the turbines were
'fixtures' within the meaning of section 10 of the
Personal Property Securities Act 2009 (Cth) (PPSA) and
therefore outside the scope of the PSSA. You can read more about
Does your business lease, hire or loan plant or equipment?
If your business dry hires or wet hires plant and equipment to
customers or to your related entities for an indefinite term or for
a term of more than one year, you need to take steps to document
that hire and to correctly register its interests on the PPSR.
Failing to register can lead to severe financial consequences such
as losing ownership of personal property worth millions of
Cooper Grace Ward is a leading Australian law firm based in
This publication is for information only and is not legal
advice. You should obtain advice that is specific to your
circumstances and not rely on this publication as legal advice. If
there are any issues you would like us to advise you on arising
from this publication, please contact Cooper Grace Ward
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This case was a useful summary of when the courts are likely to grant leave to proceed against a company in liquidation.
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