The end of January saw liquidators appointed to a relatively recently established wood products company on the outskirts of Melbourne. Unfortunately, a couple of its suppliers fell foul of the PPSR’s rule that registrations against companies acting as the trustee of a Trust, should be lodged against the ABN of the Trust rather than the ACN of the trustee.
Both suppliers have been advised by the liquidator that, as their registrations are technically invalid, their unpaid goods have now vested with the insolvent estate, and they will be ranked as unsecured creditors. The liquidator has also pointed out that there are unlikely to be sufficient assets available to offer a dividend to unsecured creditors.
It might, therefore, be timely to put out a reminder as to the PPSR’s rules for Grantor identification:
Remember, while some errors on a registration may lessen its effectiveness, failure to correctly identify your Grantor in accordance with the PPSR’s rules will almost certainly invalidate the registration altogether.
You may also be interested in…
eNewsletter
Sign up to receive the latest news and information from NCI
