The Personal Property Securities Act 2009 (Cth) is a multi-faceted piece of legislation, and one of the things many businesses do not realise is that it is based on priority. That is, priority between two competing security interests.
If businesses leave their registration renewals to the last minute, they run the risk of their registrations lapsing and losing the protection they have over their personal property (Personal Property). It is important to note that a lapsed PPS registration cannot simply be renewed, as it is futile to renew an invalid PPS registration. As such, any business which allows their registrations to expire, are placed at the bottom of the list of claimants in relation to that Personal Property.
In the event a business promptly attends to re-registering an expired registration, the security on the Personal Property can be ineffective if the debtor company becomes insolvent within six months of the new registration being lodged.
Simply put, it is imperative for each and every business to renew their current registrations, on the PPSR, before 30 January 2019.
Please contact Balveen Saini with any questions or advice you may have on bsaini@bbwlaw.com.au