Sham financing statements on the PPSR: problems caused and their resolution
By Nick Anson
The Personal Property Securities Register (PPSR) does not require the person registering a security interest to file the underlying security agreement with the PPSR. That position is in contrast to a ‘documents register’ such as the former ASIC Register of Company Charges, which had an essential requirement of lodgement of the security document for effective registration. As an electronic register that permits registration to occur online, the PPSR is accordingly open to obvious abuse where a person is prepared to lodge a sham financing statement.
The registering party’s motives might be ulterior, such as to harass the would-be grantor, or might arise out of a genuine, but mistaken, belief that the registering party has a security interest in the personal property of the grantor. Either way, the would-be grantor is left having to remove the sham financing statement from the PPSR.
Although administrative and judicial processes exist under the Personal Property Securities Act 2009 (Cth) (PPSA) to remove a sham financing statement, in practice, a contested process can be time consuming and costly. Whether the existing provisions are adequate for the purpose is a real issue…
Click on the link below to read the rest of the Minter Ellison briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Minter Ellison
News from The Lawyer
Briefings from Minter Ellison
This briefing sets out some high level issues to consider on a global M&A deal where the target is an Australian company or business or where downstream Australian subsidiaries are involved.
In this article, partner Karen Payne and senior associate Vasuki Sivaloganathan of Minter Ellison outline some important tax-related tasks for your business this year.