From www.claytonutz.com: The Full Federal Court clarified the concept of “apparent possession” under the Personal Property Securities Act 2009 (Cth), ruling that it is determined from the perspective of a hypothetical observer within viewing distance of the collateral rather than from a general public viewpoint.

In the case of Kirkalocka Gold SPV Pty Ltd v Zenith Pacific (KLK) Pty Ltd, the court found that Zenith Pacific’s ownership of a power plant was established through visible signs of their presence on the site, but the security interest was not perfected as the underlying agreement did not create a registrable security interest.

The decision emphasizes the importance of registering security interests on the Personal Property Security Register while recognizing that reliance on possession remains a viable option for perfection, even in remote locations.