In the courts

Subsequent security holder retains priority
The Court of Appeal has confirmed that the rights of a second ranking security holder are not extinguished by the sale of personal property by a receiver under a first ranking security.

Failure to register a security interest does not affect the liability of a guarantor
A guarantor failed in his attempt to escape liability under a personal guarantee on the basis that the financier had failed to register its security interest on the Personal Property Securities Register.

Signature of director does not bind in dual capacity as director and shareholder
The Court of Appeal has found that a person is not bound in a dual capacity if he signs an agreement as a director but leaves blank the space provided for him to sign as a shareholder.

Directors watch out - a signature can bind in both professional and personal capacity
The High Court has determined that an individual who entered into a contract containing a guarantee and signed as a director could be bound in both her professional capacity as director and in her personal capacity under the guarantee.

Enquiries and information

For more information on any of the cases, articles and features in Financial Services Quarterly, please email Rachel Gowing or call on 64 9 916 8825.