New South Wales

Attorney General

Mr RM Hope

Chairman

Law Reform Commission of NSW

Level 12, ADC Building

189 Kent Street

SYDNEY NSW 2000

Dear Mr Hope

I refer to correspondence from the Commission's Executive Director requesting that the Commission be given a reference to examine reform of the law relating to securities over personal property and intangibles.

I agree that this topic is of sufficient importance to warrant a formal examination by the Commission in co-operation with the Australian Law Reform Commission and the Victorian Law Reform Commission, and having regard to the work of the Law Commission of New Zealand. I also understand that the Commission will be in a position to report to me prior to 30 June, 1991.

Accordingly, I am happy to refer to the Law Reform Commission the following matters for inquiry and report:

(1) Whether any changes should be made to the law relating to securities over personal property and intangibles in New South Wales and in what respect;

(2) Any related matter.

Yours faithfully

(John Dowd)

Attorney General

14 November 1990

PERSONAL PROPERTY SECURITIES

1. I, MICHAEL DUFFY, Attorney-General of Australia, noting:

• the provisions of Commonwealth, State and Territory laws dealing with corporations and securities;
• the Memorandum of Understanding on the Harmonisation of Business Laws entered into between Australia and New Zealand; and
• the report of the Law Commission of New Zealand on a Personal Property Securities Act for that country;

refer to the Law Reform Commission for review and report under section 6 of the Law Reform Commission Act 1973:

(a) whether the laws to which that Act applies which deal with the creation and enforcement of security interests in personal property, particularly by or against trading or financial corporations, are adequate and appropriate to modem conditions; and

(b) any related matter.

2. The Commission is to:

• consult relevant Federal, State and Territory government departments and authorities, including the Commonwealth Attorney-General's Department and the Australian Securities Commission, the National Companies and Securities Commission, the Law Commission of New Zealand, representatives of credit providers and users of such other persons and bodies as it thinks fit;
• consider the desirability of uniformity between relevant laws to which the Law Reform Commission Act 1973 applies and other Australian laws; and
• have regard to relevant law and experience of other countries.

3. The Commission is to co-operate with the Law Reform Commission of Victoria.

4. The Commission is to draft the legislation necessary to give effect to its recommendations and the appropriate explanatory memorandum.

5. The Commission is to report by 31 December 1990.

DATED: 8 June 1990.

Michael Duffy

Attorney-General

PARTICIPANTS

Australian Law Reform Commission

The Division of the Commission constituted under the Law Reform Commission Act 1973 for the purpose of this reference comprised the following members of the Commission

Justice Elizabeth Evatt, AO, LLB (Syd), LLM (Harv) (President)

John Greenwell (Deputy President)

Professor John Goldring, BA, LLB (Syd), LLM (Columbia) (Commissioner)

Stephen Mason, BA, LLB, MTCP (Syd) (Commissioner)

Christopher Sidoti, BA, LLB (Syd) (Commissioner)

Senior Law Reform Officer

Joanna Krygier BA (Hons) (Syd), LLB (NSW) (to 13 March 1992)

Senior Research Officer

Andrew Naylor (from 6 March 1992)

Library

Joanna Longley, BA (Lib) (CCAE)

Louise Levido

Typesetting

Anna Hayduk

New South Wales Law Reform Commission

The Law Reform Commission is established by the Law Reform Commission Act 1967 (NSW). Pursuant to s 12A of the Act, the Chairman has constituted a Division for the purposes of conducting this reference. The members of the Division are

The Hon RM Hope QC, AC, CMG (Chairman)

Mr Hal Sperling QC, LLB (Syd)

Mr Peter Reid, BA, LLB (Syd)

Executive Director

Mr Peter Hennessy LLB (WA), BEc (ANU)

Research and Writing

Ms Suwanee Dharmalingam BComm, LLB (NSW)