23164-1911-Supplementary-Bill-re-published--Companies — Page 65

Avoidance of

874

Supplemental Provisions,

197—(1) In the case of voluntary winding up, every transfers, &c. transfer of shares, except transfers made to or with the sanction of the liquidator, and every alteration in the status of the members of the company made after the commen- cement of the winding up, shall be void.

after com- mencement of winding up.

8 Edw. 7 c. 69 s. 250.

Debts of all

descriptions to be proved.

Ib. s. 206.

Application of bank-

ruptcy rules in winding up of insol- vent com- panies.

b. s. 207.

Preferential payments. Ib. s. 209.

(2) In the case of a winding up by or subject to the supervision of the court, every disposition of the property (including things in action) of the company, and every transfer of shares, or alteration in the status of its members, made after the commencement of the winding up, shall, unless the court otherwise orders, he void.

198. In every winding up (subject in the case of iusol- vent companies to the application in accordance with the provisions of this Ordinance of the law of bankruptey) all debts payable on a contingency, and all claims against the company, present or future, certain or contingent, ascer- tained 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 clains as may be subject to any contingency or sonud only in damages, or for some other reason do not bear a certain value.

199. In the winding up of an insolvent company the same rules shall revail and be observed with regard to the

! respective rights of secured and unsecured creditors and to debts provable and to the valuation of annuities and future and contingent liabilities as are in force for the time being under the law of bankruptcy with respect to the estates of persons adjudged 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.

200.-(1) In a winding up there shall be paid in' prior- ity to other debts-

(a) All local rates due from the company at the date hereinafter mentioned, and having become due and payable within twelve mouths next before that date; and

(b) 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-

(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

(4) 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 suins 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 sufficient 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,

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