PPSA update: PPS Bill to extend ‘PPS Lease’ from one year to two years passed by Parliament
The PPS Bill that proposed amendments to the meaning of a ‘PPS Lease’ in the Personal Property Securities Act has been passed.
18 May 2017
The PPS Bill that proposed amendments to the meaning of a ‘PPS Lease’ in the Personal Property Securities Act has been passed.
On 23 March 2017, Justice Robson of the Supreme Court of Victoria declined to follow the Victorian Court of Appeal decision of Re Enhill, finding that the decision was not binding with respect to different legislation (the Companies Act 1961 (Vic) as opposed to the Corporations Act 2001 (Cth)).
On 17 March, in Hambleton v Finn [2017] QDC 61, McGill SC DCJ of the District Court of Queensland applied the section 553C(1) setoff under the Corporations Act 2001 to a liquidator’s insolvent trading claim against a director.
When a lessee fails to comply with a notice to remedy a non-payment or other lease default, the lessor may be entitled to terminate the lease and retake possession of the property. This is commonly done by changing the locks.
Important proposed amendments to the meaning of a ‘PPS Lease’ in the Personal Property Securities Act.
On 6 February 2017, the New South Wales Court of Appeal dismissed an appeal against the well-known decision of the Supreme Court where a lessor lost its interest in turbines (worth US$44 million) because of its failure to register on the Personal Property Securities Register (PPSR).
Last week the Supreme Court of New South Wales provided another timely reminder to ensure that all security interests are correctly registered on the Personal Property and Securities Register (PPSR) through the decision In the matter of OneSteel Manufacturing Pty Ltd (administrators appointed) [2017] NSWSC 21.
Failing to register a lessor’s security interest on the PPSR over plant and equipment at leased premises can result in the lessor’s unperfected security interest passing to the administrator of the lessee.
In the recent case of Hadley v BetHQ Pty Ltd [2016] FCA 1263, the debtor company, BetHQ, came to grief when a statutory demand was validly served at the company’s registered office in Brisbane as shown in ASIC records.
In our previous bulletin we discussed the ‘safe harbour’ model in the Government’s suggested reforms to the current insolvency laws. This bulletin considers another of the focus questions in the Proposal Paper: the voiding of ipso facto clauses relating to insolvency events.
On 29 April 2016, the Federal Government released a Proposals Paper titled ‘Improving bankruptcy and insolvency laws’.
In a recent determination, the Financial Ombudsman Service (FOS) reduced the liability of a co-borrower who received no ‘real’ benefit from the loan.