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

Choice of name - name clause, Choice of Name - Name Clause: However, i...

Choice of Name - Name Clause: However, it might be relevant to note that the registrar of English companies, pursuant to his powers under the corresponding section of the Engl

Termination of an offer - revocation, Termination of an Offer - Revocation ...

Termination of an Offer - Revocation Such offer is "revoked" whether the offeror changes his thinking and withdraws it as for expressly or impliedly.  However to be valid suc

Business law for commercial transactions, (These are short answer assignmen...

(These are short answer assignments; just a few paragraphs for each part is all that is required) Assignment 1: Discussion Questions In this assignment, you will research and appl

Provisions prevent capital going out of the company, Provisions Which Preve...

Provisions Which Prevent Capital Going Out Of The Company: In Trevor v Whitworth (1887) Lord Watson stated: "Paid-up capital may be diminished or lost in the course of the

Liability of retiring partner, Liability of Retiring Partner Whether u...

Liability of Retiring Partner Whether unless there is a special agreement for the contrary like a retiring partner can be held liable no more in respect of debts incurred prev

BUSL320, How much for a 1000 word report? Graduate level

How much for a 1000 word report? Graduate level

What is the principal-agent paradigm, What is the principal-agent paradigm ...

What is the principal-agent paradigm Controversies on the decisions of many state governors and other ministers can be cited as examples. Such behaviour reflects their willing

Ostensible authority - authority of partners, Ostensible Authority - Author...

Ostensible Authority - Authority of Partners A difference is something drawn among the genuine and ostensible authority about a partner. Whether it is actual or express author

Explain the united nations convention on the law of the sea, United Nations...

United Nations Convention on the Law of the Sea The rights over the sea were extended by the United Nations Convention on the Law of the Sea (UNCLOS) adopted in 1982. The UNCLO

Duties of directors - company management, Duties of Directors: The dut...

Duties of Directors: The duties of directors are usually considered under two broad headings, namely- i. Duties of care and skill at common law, and ii. Fiduciary duties

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