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CORPORATIONS ACT 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.6 - WINDING UP GENERALLY  

Division 6 - Proof and ranking of claims  

Subdivision D - Priorities  

SECTION 561  

561  PRIORITY OF EMPLOYEES' CLAIMS OVER CIRCULATING SECURITY INTERESTS  

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So far as the property of a company available for payment of creditors other than secured creditors is insufficient to meet payment of:


(a) any debt referred to in paragraph 556(1)(e), (g) or (h); and


(b) any amount that pursuant to subsection 558(3) or (4) is a cost of the winding up, being an amount that, if it had been payable on or before the relevant date, would have been a debt referred to in paragraph 556(1)(e), (g) or (h); and


(c) any amount in respect of which a right of priority is given by section 560;

payment of that debt or amount must be made in priority over the claims of a secured party in relation to a circulating security interest created by the company and may be made accordingly out of any property comprised in or subject to the circulating security interest.


 



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