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Commercial and Corporate update: Having New Year insecurities? Risk, Security and the PPSR

Dec 6, 2013


You should not turn your back on protecting what you own!

Businesses need to protect what they own against the risk of becoming a victim under the Personal Property Securities Act 2009 (PPSA).


The PPSA redefines ‘Security Interests and many established principles and concepts of ‘ownership’.

Every business should review and identify what security interests exist and then properly document them so that they can be effectively registered on the Personal Property Securities Register (PPSR) as it may be impossible to maintain any existing level of security without doing this.

The temporary holiday period that has continued to give some protection without registration ends on 30 January 2014. It is critical to make arrangements so that registration on the PPSR can happen now.


The cost and mechanics of registering are simple but the requirements are complex, and if registration is not done correctly and the proper procedures followed it can result in that registration being completely ineffective.

  1. Business Loan

    Is there a loan by the business owner(s) to the business for working capital?

    Execute General Security Deeds and Loan Agreements to enable secure registration on the PPSR to protect loans of working capital to the business.
  2. Business Assets

    Does the business use plant and equipment or trade marks that are owned by a separate related entity or person so they are protected from the operating risks of the business?

    Prepare Licence Agreements and Rent/Lease Agreements for plant, equipment, vehicles and intellectual property (trade marks, patents, software etc.) and register on the PPSR.
  3. Commercial Leases

    Does a landlord or tenant own fittings or equipment located in leased premises or is there a cash security deposit from a tenant?

    Security documentation should be prepared and registered appropriately on the PPSR, for landlord or tenant, for any lease fit-outs or equipment on leased premises and for any cash rental security deposits.  Amendments should also be made to future leases and lease renewals so that this protection can be incorporated easily from the outset.
  4. Sale of Goods

    Are goods supplied to customers on consignment or subject to ROT (retention of title) in the case the customer has not paid and becomes insolvent?

    Amend or replace Terms & Conditions of supply and Consignment Agreements together with a Step by Step Guide to enable registration on the PPSR on an ongoing basis.

How do you protect security interests with the PPSR?

If you answered ‘YES’ or ‘I think so’ to any of the above questions, then solutions can be easily implemented, but investigation is necessary to ensure that all security interests like these are properly registered on the PPSR.

Kliger Partners can IDENTIFY the risks and provide the necessary DOCUMENTATION in each of these important areas, and others, so that security interests can be REGISTERED effectively.

Until now, a measure of protection could be put in place by merely following a few straightforward procedures and documenting transactions. The PPSA now creates a regulated legal structure to formally register security interests. If registration on the PPSR is not done properly then property in which you have an ownership interest, can be put at risk of being seized or sold or both.

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