As I commented on the TLCF Law Blog, whilst I am confident that many in the wider business community will be caugh out by the transition period ending, this will provide another strong opportunity for lawyers to encourage their customers to act.
Unfortunately, many SMEs failed to act when the PPSA was introduced by registering their customers on the PPSA and I believe that these too will be the ones who will suffer when they try and reclaim their ROT stock in an insolvency relying on pre-PPSA security documentation… These companies are often the ones that can least afford a bad-debt in their ledgers.
Those businesses operating in the SME space are often neglected by their advisors (both accountants and lawyers alike) due to these clients often having small budgets to spend with these advisors… with these SME clients only reaching out when a) they get sued (call the lawyer) or b) need their year end income tax return done (call the accountant).
What are you doing to help get the word out?
The Personal Property Securities Act 2009 (“the Act”) provided for a transition period to allow affected parties to implement documentation to ensure that their interests were not adversely affected by the Act. This transition period ends on 30 January 2014.
Who does this affect?
Some of the affected parties include:
- you are a supplier of goods on credit (i.e. retention of title/consignment claims);
- you lease/bailment of chattels to others;
- you have loaned monies to another party with charging rights over assets of the borrower;
- You are in the business of leasing property with chattels (i.e. furniture/fit-outs);
- You have rights under a shareholder or joint venture and have a security interest/charge over another’s assets in the case of a default
and you had an arrangement in place prior to 30 January 2012 which has not subsequently been perfected/registered in the Personal Property Securities Act Register.
Under the Act such parties…
View original post 456 more words
Adrian Hunter 