Postponing subordinate claims
563A Postponing subordinate claims
The payment of a subordinate claim against a company is to be postponed until all other debts payable by, and claims against, the company are satisfied.
In this section:
claim means a claim that is admissible to proof against the company (within the meaning of section 553).
debt means a debt that is admissible to proof against the company (within the meaning of section 553).
subordinate claim means:
a claim for a debt owed by the company to a person in the person’s capacity as a member of the company (whether by way of dividends, profits or otherwise); or
any other claim that arises from buying, holding, selling or otherwise dealing in shares in the company.
This Act’s bill:Explanatory memorandumSecond reading speech
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