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Current Legal News

PPSR Lease Losses

Can be a real risk for business
When the Personal Property Securities Register (the PPSR) was established in 1999, most businesses were quick to catch on that it was a good idea to register security over goods that were sold under a line of credit. What wasn’t so easily recognised is that the register was designed to also capture leases of goods that are indefinite or extend past one year.

Mainzeal case – highlights director responsibilities

Mainzeal case – highlights director responsibilities
The recent high-profile Mainzeal case has highlighted the importance for directors to know and understand their duties under the Companies Act 1993.

Four of Mainzeal’s directors were found liable for $36 million in damages for breaching section 135 of the Act which is headed ‘reckless trading’. This section prohibits directors from agreeing to cause or allow the business of the company to be carried out in a way that is likely to create substantial risk of serious loss to the company’s creditors.