[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-292022-105":59,"doc-detail-292022-en":131},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":124,"head_meta":126,"extra_data":128,"updated_unix":130},105,"en","corporate-insolvency-in-australia-submission-1","Corporate Insolvency in Australia - Submission 1","","Submission 1 examines corporate insolvency in Australia through the PPSA framework, focusing on how the Personal Property Securities Act 2009 (Cth) recharacterizes many commercial transactions as security interests in substance. It explains the “substance” test, the PPSR registration requirement, and why unregistered or late-registered security interests “vest” in the corporate grantor upon winding up or administration. The discussion contrasts the strict PPSA consequences with the former Corporations Act regime and underlying Nemo Dat principle.",{"@graph":69,"@context":123},[70,84,106],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/corporate-insolvency-in-australia-submission-1/292022/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/corporate-insolvency-in-australia-submission-1/292022.png","ImageObject",300,407,{"name":92,"@type":93},"Well Done","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-31","2026-09-17",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",13,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"What is the “substance” test under the PPSA?","Question",{"text":113,"@type":114},"The PPSA applies where, in substance, the debtor grants personal property as security for its obligations to the secured party. Many commercial arrangements can fall within this characterization.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"Why is registration on the PPSR critical for secured parties?",{"text":118,"@type":114},"Registration publicly evidences the secured party’s rights in the collateral. In disputes involving third parties, the presence or absence of registration can determine the outcome.",{"name":120,"@type":111,"acceptedAnswer":121},"What happens to an unregistered security interest in corporate insolvency?",{"text":122,"@type":114},"An unregistered security interest vests in the corporate grantor upon winding up, voluntary administration, or a deed of company arrangement being entered into. This shifts the collateral and value into the grantor’s asset pool for distribution.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},292022,1789647644,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":19,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":130,"read_time":52,"preview_page_count":4},5909892210082,"https://ap-avatar.wpscdn.com/avatar/56001069da27c9f41e8?x-image-process=image/resize,m_fixed,w_180,h_180&k=1789614185077863061","Corporate Insolvency in Australia  \nSubmission 1  \nCorporate Insolvency-Submission  \nRichard Winter*; Sagi Peari**  \nCorporate Insolvency-the PPSA’s Perspective  \n1. PPSA  \nPersonal Property Securities Act 2009 (Cth) (PPSA) came into force in 2012. The PPSA applies to transactions in which the debtor (called the ‘Grantor’) provides (i.e.‘grants’) certain pieces of personal property (called ‘collateral’) to secure their obligation towards the creditor (called ‘Secured Party’) . The so-called ‘substance’test 1 lies at the heart of the PPSA. According to this test, a significant number of commercial transactions may ‘in substance’ reflect a situation under which the Grantor ‘grants’ certain personal property as a security of their obligation towards the Secured Party.  \nPrior to the start of the PPSA, owners of leases and commercial actors providing goods on ‘retention of title’ (ROT) terms, were not subject to the corporate charge provisions of the Corporations Act and were not required to register any interest to protect themselves and neither were they required to register on other state or federal registers. With the PPSA’s legislation, a significant number of transactions could potentially be classified as meeting the requirements of the ‘substance’ test:  \nhire-purchase agreements, various leases, subleases, various consignments, ROTsand many others.  \nStated in these terms, the PPSA epitomises a new era of secured transactions in Australia. It is relevant for almost every commercial transaction. Furthermore, given the phenomenon of digitalisation and the multilayered complexity of modern commercial activity and dealings, many types of personal property could serve as‘collateral’: various physical items, financial property (bonds and shares), intellectual property and so on. This points to the growing popularity of the PPSA in the years to come.  \nThe requirement of registration is a key concept of the PPSA. With some minor exceptions,2 the Secured Party must register on the Personal Property Securities Register (PPSR)3 their security interest in the collateral. Through the online registration process the Secured Party publicises their right to the collateral and  \n* PhD candidate, University of Western Australia Law School  \n** Senior Lecturer in Private and Commercial Law, University of Western Australia Law School; Director, UWA Business Law Major.  \n1 PPSA S 12.  \n2 S 8 (6) .  \n3 [https://www.ppsr.gov.au/](https://www.ppsr.gov.au/) .  \nCorporate Insolvency in Australia  \nSubmission 1  \nmakes it visible to others. The requirement of registration is especially important in disputes between the Secured Party and third parties who may interact with the Grantor and the collateral: other secured parties, buyers/subleases of the collateral and, of course, the insolvency liquidator.  \n2. The Relevant Provisions  \nThe interplay between the PPSA’s provisions and corporate insolvency is critical. Infact, since its inception, PPSA’s case law has significantly evolved around the interplay between the two.4 Thus, section 267 of the PPSA provides that an unregistered security interest ‘vests’ (i.e. moves) to a corporate grantor upon its winding up, voluntary administration or where a deed of company arrangement is entered into.5 This is a harsh provision. It means that the collateral and its value moves to the pool of the Grantor’s assets to be distributed amongst the creditors. There is nothing in the PPSA allowing a Secured Party to petition the court to extend the time for registration once the insolvency proceedings commence. If the Secured Party is late and non-registered at the time of the insolvency, the security interest will automatically move to the Grantor.  \nSection 588FL of the Corporations Act (brought in as an amendment alongside the commencement of the PPSA) applies if a Secured Party’s security interest is not registered within 20 business days of its creation, and the Grantor (being a company) is placed into liquidat","cbCaiuTAopM86AFf","https://ap.wps.com/l/cbCaiuTAopM86AFf","pdf",261206,"English","# PPSA\n## The substance test and secured transactions\n## Registration requirement and effect\n# The Relevant Provisions\n## Vesting of unregistered security interests (s 267)\n## Late registration consequences (s 588FL)\n## Comparison with former Corporations Act regime","[{\"question\":\"What is the “substance” test under the PPSA?\",\"answer\":\"The PPSA applies where, in substance, the debtor grants personal property as security for its obligations to the secured party. Many commercial arrangements can fall within this characterization.\"},{\"question\":\"Why is registration on the PPSR critical for secured parties?\",\"answer\":\"Registration publicly evidences the secured party’s rights in the collateral. In disputes involving third parties, the presence or absence of registration can determine the outcome.\"},{\"question\":\"What happens to an unregistered security interest in corporate insolvency?\",\"answer\":\"An unregistered security interest vests in the corporate grantor upon winding up, voluntary administration, or a deed of company arrangement being entered into. This shifts the collateral and value into the grantor’s asset pool for distribution.\"}]","Corporate Insolvency in Australia - Submission 1 | PDF"]