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226. General rule as to priority of expenses

Past version: effective from 14/06/2015 - 13/06/2015
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(1) The expenses of the winding-up are payable out of the assets in the following order of priority —
(a) expenses which are properly chargeable or incurred by the provisional liquidator in carrying out the functions conferred on him by the Court;
(b) expenses or costs which are properly chargeable or incurred by the liquidator in preserving, realising or getting in any of the assets of the Company or otherwise relating to the conduct of any legal proceedings which he has power to bring or defend whether in his own name or the name of the Company or in the preparation or conduct of any negotiations intended to lead or leading to a settlement or compromise of any legal action or dispute to which the proceedings or procedures relate;
(c) any fees payable to the Court or to any official body in relation to the proceedings;
(d) the cost of any security provided by a provisional liquidator or liquidator in accordance with these Regulations;
(e) the remuneration of the provisional liquidator (if any);
(f) any deposit lodged on an application for the appointment of a provisional liquidator;
(g) the costs of the petitioner, and of any person appearing on the petition whose costs are allowed by the Court;
(h) any amount payable to a person employed to assist in the preparation of a Statement of Affairs or of accounts;
(i) any allowance made, by order of the Court, towards costs on an application for release from the obligation to submit a Statement of Affairs, or for an extension of time for submitting such a statement;
(j) any necessary disbursements by the liquidator in the course of his administration (including any expenses incurred by members of the Liquidation Committee or their representatives and allowed by the liquidator under Schedule 7 (Creditors' Committees);
(k) the remuneration or emoluments of any person who has been employed by the liquidator to perform any services for the Company, as required or authorised by these Regulations;
(l) the remuneration of the liquidator; and
(m) any other expenses properly chargeable by the liquidator in carrying out his functions in the liquidation.
(2) The Court may, in the event of the assets being insufficient to satisfy the liabilities, make an order as to the payment out of the assets of the expenses incurred in the winding-up in such order of priority as the Court thinks just.
(3) Nothing in these Regulations affects the power of any Court, in proceedings by or against the Company, to order costs to be paid by the Company, or the liquidator; nor do they affect the rights of any person to whom such costs are ordered to be paid.