by Richard Frost » Tue Jul 02 2013 5:25pm
After the removal of all assets which are subject to retention of title arrangements, fixed security, or are otherwise subject to proprietary claims of others, the liquidator will pay the claims against the company's assets. Generally, the priority of claims on the company's assets will be determined in the following order:
Liquidators costs
Creditors with fixed charge over assets
Costs incurred by an administrator
Amounts owing to employees for wages/superannuation
Payments owing in respect of workers's injuries
Amounts owing to employees for leave
Retrenchment payments owing to employees
Creditors with floating charge over assets
Creditors without security over assets
Shareholders (Liquidating distribution)
Unclaimed assets will usually vest in the state as bona vacantia.
As I understand it, HMRC used to be a prefered creditor under British law and used to get paid before others. (The right of the Crown as a preferential creditor was removed by the Enterprise Act 2002.)
In this case HMRC put the claim in after the first dividend had been paid. The liquidator had the choice to accept the claim or not and chose to accept it. Because the claim was late there was no requirement to pay HMRC a first dividend. So they got the balance!
After the removal of all assets which are subject to retention of title arrangements, fixed security, or are otherwise subject to proprietary claims of others, the liquidator will pay the claims against the company's assets. Generally, the priority of claims on the company's assets will be determined in the following order:
Liquidators costs
Creditors with fixed charge over assets
Costs incurred by an administrator
Amounts owing to employees for wages/superannuation
Payments owing in respect of workers's injuries
Amounts owing to employees for leave
Retrenchment payments owing to employees
Creditors with floating charge over assets
Creditors without security over assets
Shareholders (Liquidating distribution)
Unclaimed assets will usually vest in the state as bona vacantia.
As I understand it, HMRC used to be a prefered creditor under British law and used to get paid before others. (The right of the Crown as a preferential creditor was removed by the Enterprise Act 2002.)
In this case HMRC put the claim in after the first dividend had been paid. The liquidator had the choice to accept the claim or not and chose to accept it. Because the claim was late there was no requirement to pay HMRC a first dividend. So they got the balance!
