Rights of creditor who has not proved debt before declaration of dividend
5.6.68 Rights of creditor who has not proved debt before declaration of dividend
If:
a creditor’s debt or claim has not been admitted before the declaration of a dividend; and
the debt or claim is admitted;
the creditor is entitled to be paid dividends that the creditor has failed to receive, out of any available money for the time being in the hands of the liquidator, before that money is applied to the payment of a further dividend.
A creditor is not entitled to disturb the distribution of a dividend declared before the creditor’s debt or claim was admitted.
This regulation does not apply in relation to a creditor of a company that is subject to the simplified liquidation process.
This Act’s bill:Explanatory statement
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