If a secured creditor fails to register its interest on the PPSR within 20 business days of the security agreement being created, and. Here’s the abridged version of section 588FL: It was never meant to catch out companies like Doka, but the law is clear, and there is no room for discretion. The change to the Corporations Act 2001 was made for the purpose of preventing companies with knowledge of actual or impending insolvency from granting security over assets to friendly parties. Little did they know at the time that the Corporations Act 2001 had been amended to harmonise with the Personal Property Securities Act. Doka had delivered equipment to Relux before they got around to registering their security interests on the Personal Property Securities Register (PPSR). It is a little-known amendment to the Corporations Act that tripped Doka up.ĭoka is in the business of leasing formwork equipment and had an ongoing trading relationship with Relux. Find out what happened and how your business can avoid the same fate. They lost around $1 million simply because they registered too late. What could be more frustrating than registering a security interest on the PPSR only to find out that you’ve still lost out? That’s what happened to equipment leasing company Doka Formwork Pty Ltd.
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