GuidesReviewed 29 July 2026

Resolving security interests in administrations and wind-ups

Insolvency practitioners & lawyers

s267
unperfected vests
Perfection
decides enforceability
Grantor search
maps the interests
AFSA
runs the register

When a company enters administration or a wind-up, its PPSR security interests help decide who is entitled to what. Each registration is assessed for two things: is it perfected, and where does it sit in priority.

The register is the starting point — a grantor search maps every registered interest over the company's personal property (ppsr.gov.au — external administration of a grantor).

An unperfected security interest vests in the grantor on external administration — the register is where you find out.

The vesting rule: PPSA s267

The single most consequential PPSR rule in an insolvency is the vesting of unperfected interests.

Under section 267 of the PPSA, a security interest that is unperfected at the time an administrator or liquidator is appointed vests in the grantor — so it can no longer be enforced against the company's other stakeholders (PPSA s267). An interest is perfected mainly by registration on the PPSR, or by possession or control; if it was never registered, or registered defectively, it is at risk.

How the PPSR side is resolved

  1. Search the grantor

    A grantor search on the company's ACN/ABN returns every registration against it — the secured parties, the collateral classes, and the registration dates (ppsr.gov.au).

  2. Test each interest for perfection

    For each registration, establish whether the interest is perfected and correctly registered — grantor identifier, collateral description, and timing.

  3. Assess priority and enforceability

    Work out where perfected interests sit in priority, and which unperfected ones have vested under s267 (ppsr.gov.au — enforcing security interests).

  4. Resolve the registrations

    Deal with registrations that need discharging or correcting, so the register reflects the resolved position.

Sources: Personal Property Securities Register (ppsr.gov.au) — external administration of a grantor and enforcing your security interests; Personal Property Securities Act 2009 (Cth), s267; Corporations Act 2001 (Cth), ss 588FL–588FN. The PPSR is operated by the Australian Financial Security Authority (AFSA).

Frequently asked questions

Each registration is assessed for perfection and priority. Under PPSA s267, a security interest that is unperfected when the administrator or liquidator is appointed vests in the grantor — so it can't be enforced against the company's other interests.

A security interest is perfected mainly by registering it on the PPSR (or by possession or control). If it isn't perfected — commonly because it was never registered, or registered defectively — it vests in the grantor on external administration under s267.

Yes. Beyond s267, a security interest perfected only by registration can vest if it was registered within six months before the administration and more than 20 business days after the security agreement — a timing rule practitioners check early.

By assessing and resolving the PPSR side: establishing what's registered, whether interests are perfected, and dealing with registrations that need discharging or correcting. Identifying and resolving is the extent of it; Verexia won't determine the administration's outcome.

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