The Personal Property Securities Act has in the event of insolvency removed the rights of ownership as the paramount right and raised the rights of a person who merely “possesses or controls” an asset to that mantle.
Insolvency administrators can now treat all assets in the possession or control of a company in financial distress as the assets of the company, regardless of who owns them.
Accordingly, whenever you give up possession or control of your assets including for example, hire businesses, leasing of plant and equipment or third party warehousing arrangements,you could, unless you now secure your interest by registration on the PPSR, be at risk of losing your underlying assets, notwithstanding that title to those assets has not passed.
Take Out Lesson:
Possession is now 10/10ths of the law. In order to secure the return of your underlying assets you must register on the PPS Register or risk losing those assets and becoming an unsecured creditor.