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

Describe about a trade union, Question 1: (a) Describe about a Trade Un...

Question 1: (a) Describe about a Trade Union. (b) Show the objectives of the Trade Union in the Republic of Mauritius. Justify your answer. (c) If you were nominated as

Redemption of shares, Redemption of Shares: Section 60 (1) empowers a ...

Redemption of Shares: Section 60 (1) empowers a company limited by shares to issue preference shares that are, or may be at the option of the company are to be liable, to be r

The international court of justice, The International Court of Justice ...

The International Court of Justice The International Court of Justice (ICJ) issued a legal opinion on the legality of nuclear weapons, which says that the threat or use of forc

State article 8 of universal declaration of human rights, State Article 8 o...

State Article 8 of Universal Declaration of Human Rights. Article 8 - 'Everyone has a  right to  an  effective  remedy by  the  competent national tribunal for acts violating t

Advantages of stare decisis - aptitude for growth, Advantages of Stare Deci...

Advantages of Stare Decisis - Aptitude for growth However process of 'distinguishing' cases facilitates the growth of detailed legal principles to deal by different factua

Law of contract, Law of Contract: Mr.Sakr who owns a factory in Baabda...

Law of Contract: Mr.Sakr who owns a factory in Baabda for manufacturing furniture, signed a contract in his factory in 12-7-2009 with Mr.Abdo who used to import woods from Bra

Unsecured trade creditors, Unsecured trade creditors: It refers to a "...

Unsecured trade creditors: It refers to a "class" of members or of creditors. Obviously if two or more companies are involved or if one company has two classes of shares, eg.

Disadvantages of arbitration, Disadvantages of Arbitration F...

Disadvantages of Arbitration First is, Arbitral awards have no precedential value as that they cannot be relied on in subsequent proceedings Second is, Arbitrati

Principles applicable regarding the unjustified termination, QUESTION 1 ...

QUESTION 1 (i) What are the principles applicable regarding the unjustified termination of a contract of employment (ii) What would be your views regarding the legal issues

Entrepreneurship development, In entrepreneurship development, we have stud...

In entrepreneurship development, we have studied various aspects of Entrepreneurship Development, which will help in setting your own workshop. Though all the information has been

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