Commentary

239 Statutory provisions on preferential debts

BANKRUPTCY AND INSOLVENCY (CORPORATE INSOLVENCY) vol 3(3)

239 Statutory provisions on preferential debts

(d) Preferential debts

239 Statutory provisions on preferential debts

In a winding up, the company’s preferential debts, as defined, are to be paid in priority to all other debts of the company1. The debts2 concerned are divided into five categories, namely:

  1. 239.1

        Contributions to occupational pension schemes, etc3;

  2. 239.2

        remuneration of employees4;

  3. 239.3

        ECSC levies on coal and steel production5;

  4. 239.4

        Deposits covered by the Financial Services Compensation Scheme;

  5. 239.5

        ‘Other Deposits’;

The 1986 legislation made substantial alterations to the previous categories of preferential debts. Further changes were made by the Enterprise Act 2002 which, in relation to liquidations commencing on and

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