Did you know that there are free tools available which allow you to monitor the corporate and security activities of companies?
Using ASIC’s Company Alerts and the PPS Register’s alert notification service, you can keep an eye on changes that occur with your debtors, competitors and service providers.
ASIC provides a Company Alert service which will notify you via email when documents are lodged for a particular company.
The Alert will tell you the type of document that has been lodged and the date of lodgement. From this you will be able to infer a number of things, e.g.:
- If there has been a change to the status of a company, for example:
- A receiver, liquidator or external administrator has been appointed;
- An application for winding up the company has been lodged; or
- An application for de-registration of the company has been lodged;
- If there has been a change in the directors or shareholders of a company; and
- If share buyback documentation has been lodged.
You can set up 5 profiles per email address and each profile can monitor up to 25 companies.
Company Alerts can be set up via the ASIC website.
Monitoring Security Interests
Before the Personal Property Securities Act 2009 (Cth) (the PPSA) came into place, a Company Alert would also provide an alert if a charge was registered over the assets of the company. However, now that the PPSA applies, a security over the personal property of a company is notified on the Personal Property Securities Register (PPS Register) and is no longer the responsibility of ASIC. If you need a crash-course in what the PPSA is and how the PPS Register operates, you can read more here.
The PPS Register also has an alert notification service, under which you can be notified when there is a new registration or an amendment (including a discharge) for an organisational grantor (i.e. a party that is described by an ACN, ARBN or Australian Registered Scheme Number). Therefore, this alert system covers more than just companies and includes partnerships, trusts, managed investment schemes, etc.
As is the case for the Company Alerts, an email is sent to a nominated email address when a security interest is registered or amended. There is no fee for the alert notifications service.
The PPS Register alert notification service are available on the PPS Register.
How to use these tools
These tools are particularly useful to monitor your debtors. For example, a change of directors or the registration of a security interest over all of your debtor’s assets may influence how much credit you provide in the future.
These are not the only tools that can assist you in managing the risk of extending credit. A comprehensive set of Trading Terms & Conditions can protect your dealings with your customers, so that you can set out when you expect to be paid (and charge interest if you are not paid on time) and agree to take security in the goods you supply.
Who can help?
The information contained in this post is current at the date of editing – 24 November 2023.