Hidden interests…buyers beware!
Persons who obtain finance, more commonly commercial, car or personal finance, a security interest is generally registered on the Personal Property Securities Register known as the PPSR. In doing so, they are securing their interests on the borrower’s personal property, such as cars, boats, plant and equipment, but does not include land, certain licences and a few other exceptions. While registration of a security interest is not compulsory, a financier (secured party) may lose its priority to the personal property if it is in competition with other security interests.
If you are looking to purchase business, plant, equipment, car, boat, trailer or the like, a search of the person and/or company in ownership of the property is a must as part of your due diligence. At settlement and transfer of the property you have a right to clear and free possession of that property from the seller. If the personal property is under finance and the PPSR charge is not released when the property is transferred to you, the financier has a right, in the first instance, to repossess the property should the seller default on their loan arrangement. It is important that any security interests are discharge prior to the property being transferred to you.
The PPSR is a single national register for personal property security interests and an online noticeboard of the particulars of a security interest for a particular individual or company.
Follow the link below to find out more information about the PPSR: https://www.ppsr.gov.au/ppsr-overview
If you wish to discuss your own secured property or that of a sellers please contact our legal team on 03 5278 95000 or email firstname.lastname@example.org
Katherine Taylor – Law Clerk
Often our business clients want advice on putting into place employment arrangements that are flexible in the form of casual employment arrangements that may also suit employees.
At times the business may want confidence in the employee’s performance before considering a full time contract or the business may be approached by a casual employee who seeks to be converted to full time employment after working regular hours.
In September 2018 the Fair Work Commission (FWC) turned its attention to the question of “Casual Conversion” and the employer’s obligation to convert a causal employee working regular hours to full time or part time permanent employment. From 1 October 2018 the FWC varied many awards to include this right. Subject to certain prerequisites in many circumstances (that is 84 Modern Awards in addition some 28 Modern Awards that already contain the right) an employee has a right to request casual conversion to permanent employment.
The rights is subject to the casual employee working a pattern of hours over the previous 12 months that they could continue to perform on a full time or part time basis under the provision of the applicable award.
Subject to the formalities such as the request being in writing the employer may refuse only on reasonable grounds such as: the employee is not working regular hours; it is known or reasonably foreseeable the employee’s position will end; it is known that the employee’s hours will significantly reduce in the next 12 months. Any such ground must be provided to the employee in writing in 21 days of the request being made. If the employee disputes the alleged facts or claimed reasonable bases, the dispute will be heard at FWC.
Accordingly business are not required to offer employees under relevant Modern Awards permanent employment and the casual employee’s right depends on the facts determining regular employment over the preceding 12 months. If casual employees prefer flexibility and 25% higher pay they will not exercise this right.
If you would like more information, or to find our how we can help – please get in touch with our team.
Richard Pinkstone – Principal Solicitor
The world of business dealings is underpinned by trust and reliance on promises to supply goods or services often with the consideration such as payment of money, a debt being due sometime in the future. Once a contract is legally enforceable, the Court will, if the contract is breached, allow the injured party to seek recovery in the Courts.
Canny Legal regularly act in “debt recovery” proceedings. Some claims may be very simple such as a failure or refusal to pay monies on account. However in the cut and thrust of business dealings, contracting parties may have complex arrangements to reach out to potential customers and rely on more complex trading terms.
Suppliers may offer their customers credit terms reflecting their trade requirements. For example a plumber may have a business which has many projects under way and needs plumbing supplies to compete works before it gets paid from expected future profit. The supplying company may agree to trade on credit with interest which should also be secured by a personal guarantee and a charge over the director’s property. In this scenario we often find our client’s customers may “bite off more than they can chew” and default in their accounts resulting in debt recovery proceedings.
On the other side of the fence we also act for defendants against claims for monies due and owing and we will explore any genuine defences available to defeat the claim or reduce it by way of set-off.
Debt recovery requires the careful weigh-up of a return for recovery on a debt as against time, legal costs and the uncertainties of litigation. There will be a range of facts to consider before being able to assess and legally advice on the merits of each claim or each defence.
If you would like more information, we are always here to help. Please get in touch with our team.
Richard Pinkstone – Principal Solicitor