Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p75
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 75/110)
Character Range: 342089–345092

payments

  96. Section 556 of the Corporations Law is amended:

    (a) by omitting subsection (1) and substituting the following subsections:

     "(1) Subject to this Division, in the winding up of a company the following debts and claims must be paid in priority to all other unsecured debts and claims:

         (a)    first, expenses (except deferred expenses) properly incurred by a relevant authority in preserving, realising or getting in property of the company, or in carrying on the company's business;

         (b)    if the Court ordered the winding up—next, the costs in respect of the application for the order (including the applicant's taxed costs payable under section 466);

         (c)    next, the debts for which paragraph 443D(a) entitles an administrator of the company to be indemnified (even if the administration ended before the relevant date), except expenses covered by paragraph (a) of this subsection and deferred expenses;

         (d)    if the winding up began within 2 months after the end of a period of official management of the company— next, debts of the company properly incurred by an official manager in carrying on the company's business during the period of official management, except expenses covered by paragraph (a) of this subsection and deferred expenses;

          (da)  if the Court ordered the winding up—next, costs and expenses that are payable under subsection 475(8) out of the company's property;

         (db) next, costs that form part of the expenses of the winding up because of subsection 539(6);

         (dc) if the winding up began within 2 months after the end of a period of official management of the company— next, the remuneration, in respect of the period of official management, of any auditor appointed in accordance with Part 3.7;

         (dd) next, any other expenses (except deferred expenses) properly incurred by a relevant authority;

         (de) next, the deferred expenses;

         (df) if a committee of inspection has been appointed for the purposes of the winding up—next, expenses incurred by a person as a member of the committee;

         (e) subject to subsection (1A)—next, wages and superannuation contributions payable by the company in respect of services rendered to the company by employees before the relevant date;

         (f) next, amounts due in respect of injury compensation, being compensation the liability for which arose before the relevant date;

         (g) subject to subsection (1B)—next, all amounts due:

           (i) on or before the relevant date; and

           (ii) because of an industrial instrument; and

           (iii) to, or in respect of, employees of the company; and

           (iv) in respect of leave of absence;

       (h) subject to subsection (1C)—next, retrenchment payments payable to employees of the company.

  "(1A) The amount or total paid under paragraph (1)(e) to, or in respect of, an excluded employee of the company must be such that