MENU

Section 473 of Insolvency Act CAP 53: Expenses of liquidation to have priority over claims under floating charge

    

(1) The expenses of liquidating a company, so far as the assets of the company available for payment of general creditors are insufficient to meet those expenses, have priority over any claims to property comprised in or subject to any floating charge created by the company and are to be paid out of any such property accordingly.
(2) In subsection (1)—
(a) the reference to assets of the company available for payment of general creditors does not include an amount made available under section 474(2)(a);
(b) the reference to claims to property comprised in or subject to a floating charge is to the claims of—
(i) the holders of debentures secured by, or holders of, the floating charge; and
(ii) any preferential creditors entitled to be paid out of that property in priority to them.
(3) Provision may be made restricting the application of subsection (1), in such circumstances as may be prescribed by the insolvency regulations, to expenses authorised or approved—
(a) by the holders of debentures secured by, or holders of, the floating charge and by any preferential creditors entitled to be paid in priority to them; or (b) by the Court.
(4) References in this section to the expenses of the liquidation are to all expenses properly incurred in the liquidation, including the remuneration of the liquidator.

« Previous:   Section 472 - Preferential charge on property of company distrained within three months before making of liquidation order          Next: »   Section 474 - Share of assets to be made available for unsecured creditors where floating charge relates to company's property

Disclaimer: This document is not to be taken as legal advise.

Enhance Your Research with Bookmarks and Annotations

Here's how you can use these features:

  • To bookmark this page, click the "Bookmark this Page" button below the document title.
  • To add an annotation, highlight text in the document and select "Add Annotation" from the toolbar that appears.
  • These features are great for organizing your research and keeping track of key information.
  • You can view and manage your bookmarks and annotations on your Bookmarks and Annotations page.

Cited By:

More Sections