Our client is selling shares in a company and part of the purchase price is to be paid to him over the next 5 years.
How do we secure his position? Can the payments constitute a security interest and, if so, what documents will the company need to sign to allow us to register this interest on the PPSR?
Thank you for the question.
A security interest over all of the company’s property should be established.
The process to register the interest can be found on the Australian Financial Security Authority website – Register security interests.
The By Lawyers Personal Property Securities publications will assist. Specifically the Security agreement – Company extensive all assets can be adapted to suit.
Regards
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