Preferential debts, Business Law and Ethics

Assignment Help:

PREFERENTIAL DEBTS:

These unsecured debts which rank ahead of a floating charge and non-preferential debts are:

(a) one year's taxes, i.e. corporation tax, PAYE income tax deducted, rates, VAT unpaid at the "relevant date". The relevant date is defined as:

i. the date of the order for compulsory liquidation (or any earlier order for appointment of a provisional liquidator); or

ii. the date of passing the resolution to wind up voluntarily.

If more than one year's tax is outstanding the Income Tax Department may select whichever year yields the largest amount of corporation tax; in other cases it is the latest year's tax which is a preferential debt;

(b) wages and salary of an employee, i.e. clerk, servant, workman or labourer (including commission or piece work payments) of the four months up to the relevant date limited to a maximum of four thousand shillings owed to each individual employee, accrued holiday pay and employer's National Social Security Fund (NSSF) contributions. A director is not an employee in respect of a claim for unpaid fees - but he may be in respect of salary if he has a contract of service.


Related Discussions:- Preferential debts

Accuracy of the managers certificate, Accuracy of the managers certificate:...

Accuracy of the managers certificate: Was it the duty of the auditors to test the accuracy of the manager's certificate by a comparison of the figures in the books, and were t

Harm both companies'' reputations, Part of the client's contract clearly st...

Part of the client's contract clearly states that negative publicity will not be tolerated on any actions connected to the temp agency. You know that this situation can harm both c

Shares issued at a premium, Shares Issued At A Premium: A company may ...

Shares Issued At A Premium: A company may at times issue its shares at a price above their nominal value, i.e at a premium. This may be necessitated by the fact that the compa

What are remedies available under equity law, What are remedies available u...

What are remedies available under equity law? Remedies available under equity law are as given below: • Exact performance (forced to execute task) • Injunction (stopped t

Functions and powers of the united nations general assembly, What are the f...

What are the functions and powers of the United Nations General Assembly? The functions and powers of the United Nations General Assembly are as illustrated here: • To see a

State the legal consequences of an wrongful act, State the legal consequenc...

State the legal consequences of an wrongful act Article 28, 30 and 31 state the legal consequences of an internationally wrongful act. They are as follows:- Article 28: Lega

Exercising international rights and duties, Q. Exercising international rig...

Q. Exercising international rights and duties? Laws are the finest creation of human mind. They are intended not only to regulate our conduct and therefore our lives, but they

Classification of companies, Classification of Companies: Section 389 ...

Classification of Companies: Section 389 of the Companies Act provides that "no company there association or may partnership consisting of more than twenty persons shall be fo

Legal status - promotion, Legal Status:  A promoter is not an agent o...

Legal Status:  A promoter is not an agent of the company he promotes.  However, the English courts have held that he stands in a fiduciary relationship to the company he promo

Show the suggested actions to address phoenix activity, Q. Show the Suggest...

Q. Show the Suggested actions to address phoenix activity? There have been a range of options identified by previous works on phoenix activity, such as the Cole Inquiry and Tre

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd