PERSONAL PROPERTY SECURITIES ACT (PPSA)
PPSA governs the taking, registering and enforcing of security over all personal property (owned either by corporates or individuals) other than land or buildings. It covers all moveable tangible assets including cars, plant, machinery, crops and shares, and also certain intangible assets such as intellectual property and contractual rights.
Often business owners are not aware of how to fully utilise this aspect of asset protection. In the event of insolvency this system can enable directors or related entities to achieve priority and security over their assets.
If your business has:
Lent funds to or borrowed funds from related parties
Loan accounts between a corporate group
An asset holding company
Property stored at premises owned by an unrelated party with no lease agreement
Supplied stock on consignment
These assets or personal property could be at risk in the event of insolvency of either the business or trading partner.
Being in control ensures the best possible outcome. Ensure your business is fully utilising the PPSR (Personal Property Securities Register) system to your best advantage.