BODIES CORPORATE (OFFICIAL LIQUIDATIONS) ACT - 1963 (ACT 180)

Section - 41 - Duty to Ascertain Priority of Debt

(1) On the commencement of a winding up it shall be the duty of the liquidator, in relation to each debt which ranks for dividend, to ascertain into which class the whole or any part of the debt falls.

(2) The classes are,

(a) class A, that it to say, a debt or part of a debt which answers either of the following descriptions, that is to say,

(i) remuneration not exceeding one hundred and fifty pounds owed to an employee of the company in respect of employment during the whole or any part of the four months preceding the commencement of the winding up;

(ii) rates, taxes or similar payments owed to the Republic or a local authority which have become due and payable within the year preceding the date of the commencement of the winding up;

(b) class B, that is to say, a debt or part of a debt which does not fall within any other class;

(c) class C, that is to say, a debt or part of a debt which does not fall within class D and is, or was at any time within the year preceding the commencement of the winding up, owed to a director or former director of the company or to a near relative of any such director or former director;

(d) class D, that is to say, a debt or part of a debt which answers either of the following descriptions, that is to say,

(i) excess benefit restored to the liquidator under section 31 of this Act;

(ii) excess interest that is any portion of a debt which whether it is stated to do so or not represents interest at a rate in excess of seven per centum per annum.

(3) Class A debts shall have priority over the claims of holders of debentures under any floating charge credited by the company and shall be paid accordingly out of any property composed in or subject to such charge.