Hi Guys
The 'Personal Property Securities Act'-the PPSA- introduced in 2012- is arguably the largest change to the definition of ‘ownership’ in 200 years, essentially replacing 'Title' with 'Interest'.
A core outcome of the PPSA is the consolidation of all 40 odd assets registers into one-the ‘Personal Property Securities Register’-the PPSR. The PPSR is now the ONLY register for business assets such as shares, loans, securities, equipment, machinery, intellectual property and so on. Think of it as the old REVS register for motor vehicles having been expanded to now include every other type of business asset.
Essentially, among other things, certain types of businesses now have to register their assets on the PPSR (even though they already ‘own’ them) or face serious, possibly business ending, consequences.
Any business that supplies on credit terms, leaves property at other parties premises, consigns stock, owns IP, or pays other businesses for products are all affected by the new legislation and are at risk if they take no action.
The Act was introduced with a 'transition' period of two years that provided interim protection from the PPSA for some businesses- that protection expires on 30th January 2014……..
Many unaware/unprotected businesses not covered by the interim 'transition' protections have already lost their businesses to the new legislation-suppliers to WOW, Hasties, Super Butcher, Kentor Minerals, QES and so on-losing collectively tens of millions.
Among the issues faced by unprotected businesses from the PPSA are:
Scary isn’t it? What compounds the issue is that probably 95% of Australian businesses potentially affected haven’t yet heard about it or taken steps to protect themselves…….
We have created ww.ppsaprotection.com.au as an information portal with some simple video collateral that explains how the legislation affects different types of business. We have also posted them on You Tube under ‘PPSA Protection’.
So, if you own a business or are thinking of purchasing one, then you need to make sure that it is PPSA compliant. Failure to do so could result in the extinction of it.
Feel free to contact us with any questions you might have regarding the PPSA/PPSR-we’re always happy to chat!
Kind regards
Rick
Director
PPSA Protection
Source of this article is http://www.businesses2sell.com.au/blogs/2014/01/the-personal-property-securities-actimplicati.php
The 'Personal Property Securities Act'-the PPSA- introduced in 2012- is arguably the largest change to the definition of ‘ownership’ in 200 years, essentially replacing 'Title' with 'Interest'.
A core outcome of the PPSA is the consolidation of all 40 odd assets registers into one-the ‘Personal Property Securities Register’-the PPSR. The PPSR is now the ONLY register for business assets such as shares, loans, securities, equipment, machinery, intellectual property and so on. Think of it as the old REVS register for motor vehicles having been expanded to now include every other type of business asset.
Essentially, among other things, certain types of businesses now have to register their assets on the PPSR (even though they already ‘own’ them) or face serious, possibly business ending, consequences.
Any business that supplies on credit terms, leaves property at other parties premises, consigns stock, owns IP, or pays other businesses for products are all affected by the new legislation and are at risk if they take no action.
The Act was introduced with a 'transition' period of two years that provided interim protection from the PPSA for some businesses- that protection expires on 30th January 2014……..
Many unaware/unprotected businesses not covered by the interim 'transition' protections have already lost their businesses to the new legislation-suppliers to WOW, Hasties, Super Butcher, Kentor Minerals, QES and so on-losing collectively tens of millions.
Among the issues faced by unprotected businesses from the PPSA are:
- A business now has to register its assets on the ‘Personal Property Securities Register’-or they could become the property of another business.
- Another party can use unregistered assets as security for their own borrowings.
- A business can be subject to a ‘preferential payment’ demand for all monies received from a business you have dealt with over the past six months-with no return of goods.
- From 30th January 2014 all business assets/securities not registered on the PPSR will be not be protected or enforceable-inter-Company loans, intellectual property, leases etc.
- Pre-PPSA Terms of Trade agreements with ‘retention of title’ clauses are now worthless-they need to be redrawn in line with the Act.
Scary isn’t it? What compounds the issue is that probably 95% of Australian businesses potentially affected haven’t yet heard about it or taken steps to protect themselves…….
We have created ww.ppsaprotection.com.au as an information portal with some simple video collateral that explains how the legislation affects different types of business. We have also posted them on You Tube under ‘PPSA Protection’.
So, if you own a business or are thinking of purchasing one, then you need to make sure that it is PPSA compliant. Failure to do so could result in the extinction of it.
Feel free to contact us with any questions you might have regarding the PPSA/PPSR-we’re always happy to chat!
Kind regards
Rick
Director
PPSA Protection
Source of this article is http://www.businesses2sell.com.au/blogs/2014/01/the-personal-property-securities-actimplicati.php