The Personal Property Securities ACT 2009 is expected to commence from May 2011 and if you are currently using RETENTION OF TITLE CLAUSES you will have to change what you do. The ACT deems a retention of title as a security interest. This means that you will not be able to take possession of the goods should the purchaser default on your agreement with them. To over come this you will have to register your interest on the Personal Property Securities Register and make sure your agreements are worded correctly.
There are also a number of other areas of your affairs that will need to be reviewed to continue your existing risk minimisation strategy's. In particular if you lease goods to related entities and have fixed and floating charges over assets to protect inter entity loans. We will be talking to you over the coming months with what you will be required to do, however should you in the mean time require assistance please contact DHM Partners.
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