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

Partnerships, Partnerships:                A partnership is defined by...

Partnerships:                A partnership is defined by s.3(1) of the Partnership Act   as "the relation which subsists between persons carrying on a business in common with

Power to dispense with the word limited, Power to dispense with the word "L...

Power to dispense with the word "Limited":                             Although s.5 provides that the last word of the name of a limited company must be "limited" this would n

What do you understand by business ethics, Question : (a) Who is a ‘whi...

Question : (a) Who is a ‘whistle blower'? Explain the main disadvantage a ‘whistle blower' may face. (b) Name two engineering disasters (c) What do yo

Critically examine the exclusivity principle, Question 1: Critically ex...

Question 1: Critically examine the ‘Exclusivity Principle' and support your answer with relevant case law. Question 2: Even before the decision of the Court in Anismini

Explain international criminal law, Normal 0 false false fa...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Explain united nations general assembly, Explain United Nations General Ass...

Explain United Nations General Assembly A treaty may also be referred to as a Convention, Protocol, Agreement and Declaration. There are no legal reasons for using different na

Define your point of view about international legal relation, Define your p...

Define your point of view about international legal relation. International legal relations: International law covers the matters which may occur between countries not li

Define good governance, QUESTION The vision of a modern and efficient Pu...

QUESTION The vision of a modern and efficient Public Service is to ensure good governance and achieve excellence in the delivery of public services (a) Define good governance

Capacity - element of contract, Capacity - Element of Contract Capac...

Capacity - Element of Contract Capacity to Contract However 'capacity' may be described like the legally documented right of a person to enter with a legally binding ag

Empowers directors - company management, Empowers directors - company manag...

Empowers directors - company management: In the case of companies which have adopted Table A, Article 107 empowers directors to appoint a managing director "for such period an

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