Rolling Back Romalpa: Administrations And Retention Of Title Revisited

The amendments to the Corporations Act 2001 made in December 2007 radically changed the law surrounding administrations and retention of title clauses.

The effect of the amendments is to prevent an administrator from being personally liable for selling goods that are the subject of a retention of title clause.

What is a retention of title clause?

A retention of title clause is a provision in a contract that prevents title in goods from passing until those goods have been paid for in full.

An 'all monies' retention of title clause provides that title in goods supplied will not pass until those goods have been paid for and all other amounts owed by the Company to the supplier have also been paid in full.