17817-1910-Supplementary-Bills-read-a-first-time--Companies — Page 65

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Fraudulent preference. 8 Edw. 7 c.

69 s. 210.

Avoidance

514

(4) All wages or salary of any clerk or servant in respect of services rendered to the company during four months before the said date, not exceeding five hundred dollars; and

(c) All wages of any workman or labourer not exceeding two hundred and fifty dollars, whether payable for time or for piece work, in respect of services rendered to the company during two months before the said date,

(2) The foregoing debts shall—

() Rank equally among themselves and be paid in full, unless the assets are insufficient to meet them, in which case they shall abate in equal proportions: and

(6) So far as the assets of the company available for payment of general creditors are insufficient to meet them, have priority over the claims of holders of debentures under any floating charge created by the company, and be paid accord- ingly out of any property comprised in or subject to that charge.

(3) Subject to the retention of such sums

as may be necessary for the costs and expenses of the winding up, the foregoing debts shall be discharged forthwith so far as the assets are suficient to meet them,

(4) In the event of a distraint on any goods or effects of the company within three months next before the date of a winding-up order, the debts to which priority is given by this section shall be a first charge on the goods or effects so distrained on, or the proceeds of the sale thereof :

Provided that in respect of any money paid under any such charge the person entitled to apply for a warrant of distress shall have the same rights of priority as the person to whom the payment is made.

(5) The date hereinbefore in this section referred to is- (a) in the case of a company ordered to be wound up compulsorily which had not previously com - menced to be wound up voluntarily, the date of the winding up order; aud

(6) in any other case, the date of the commencement

of the winding up.

200.—(1) Any conveyance, mortgage, delivery of goods, payment, execution, or other act relating to property which would, if made or done by or against an individual, be deemed in his bankruptey a fraudulent preference, shall, if made or done by or against a company, he deemed, in the event of its being wound up, a fraudulent preference of its creditors, and be invalid accordingly.

(2) For the purposes of this section the presentation of a petition for winding up in the case of a winling up by or subject to the supervision of the court, and a resolution for winding up in the case of a voluntary winding up, shall be deemed to correspond with the act of bankruptcy in the case of an individual.

(3) Any conveyance or assignment by a company of all its property to trustees for the benefit of all its creditors shall be void to all intenis,

201. Where any company is being wound up by or of certain subject to the supervision of the court, any attachment, attachments, sequestration, distress, or exccution put in force against the estate or effects of the company after the commencement of the winding up shall be void to all intents.

exccution,

&c.

Ib. s. 211.

Effect of floating charge.

Ib. s. 212.

202. Where a company is being wound up, a floating charge on the undertaking or property of the company created within three months of the commencement of the winding up shall, unless it is proved that the company immediately after the creation of the charge was solvent, be invalid, except to the amount of any cash paid to the company at the time of or subsequently to the creation of, and in consideration for, the charge, together with interest on that amount at the rate of five per cent, per annum.

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