193437-1932-Supplementary-Draft-Bill--Companies — Page 96

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(V) PROVISIONS APPLICABLE TO EVERY MODE OF WINDING UP,

Proof and Ranking of Claims.

tions to be

s. 261.

249. In every winding up (subject in the case of Depts of insolvent companies to the application in accordance all descrip with the provisions of this Ordinance of the law of proved. bankruptcy) all debts payable on a contingency, and 19 & 20 Geo. all claims against the company, present or future, 5, c. 23, certain or contingent. ascertained or sounding only in damages, shall be admissible to proof against the company, a just estimate being made, so far as possible, of the value of such debts or claims as may be subject to any contingency or sound only in damages, or for some other reason do not bear а certain value.

ruptcy rules

250. In the winding up of an insolvent company Application registered in the Colony the same rules shall prevail of bank- and be observed with regard to the respective rights in winding of secured and unsecured creditors and to debts up of in- provable and to the valuation of annuities and future solvent com- and contingent liabilities as are in force for the time panies,

19 & 20 Geo. being under the law of bankruptcy in the Colony 5, c. 23, with respect to the estates of persons adjudged s. 262. bankrupt, and all persons who in any such case would be entitled to prove for and receive dividends out of the assets of the company may come in under the winding up, and make such claims against the company as they respectively are entitled to by virtue of this section.

251.—(1) In a winding up there shall be paid in Preferential priority to all other debts-

payments. 19 & 20 Geo.

(a) All local rates due from the company at the 5, c. 23,

relevant date, and having become due and §. 264. payable within twelve months next before that date;

(b) All wages or salary (whether or not earned wholly or in part by way of commission) of any clerk or servant in respect of services rendered to the company during four months next before the relevant date, not exceeding five hundred dollars;

(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 next before the relevant date :

(2) Where any payment on account of wages or salary has been made to any clerk, servant, workman or labourer in the employment of a company out of money advanced by some person for that purpose, that person shall in a winding up have a right of priority in respect of the money so advanced and paid up to the amount by which the sum in respect of which tha, dlerk, servant, workman or labourer would have been entitled to priority in the winding up has been diminished by reason of the payment having been made.

(3) The foregoing debts shal

(a) 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

(b) In the case of a company registered in the Colony, 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 accordingly out of any property comprised in or subject to that charge.