Personal Property Securities - Corporations and Other Amendments Bill 2009 - IPA comments

04/11/2008

IPA's comments to the Attorney-General's Department on the Corporations and Other Amendments Bill 2009 are enclosed.

Members should note that:

• there is proposed a new definition of 'secured creditor' in the Corporations Act, and a revised definition in the Bankruptcy Act;
• that the question of the priority of administrators' liens under s 443F CA appears to remain unresolved; and
• we also raise the question whether PPSA retention of title property would be included within the concept of secured parties with a charge on the whole or substantially the whole of the company’s property, under section 450A(3), in relation to the 'decision period'.

Michael Murray
IPA Legal Director

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The IPA made a submission on 22 August 2008 to the Attorney General's Department regarding the draft Personal Property Securities Legislation.

The purpose of the new regime is to harmonise the law and practice on personal property securities through a single national Act, supported by a single national register.  This regime is of particular interest to insolvency practitioners as the identification and validity of securities are of fundamental importance in a regime where secured creditors are permitted to stand outside the insolvency regime.  In particular, the new regime will require registration of retention of title claims in relation to goods sold to a company under terms where title does not pass until payment.

A copy of the submission can be accessed here.