THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.6 - WINDING UP GENERALLY

Division 6 - Proof and ranking of claims

Subdivision D - Priorities

SECTION 561   PRIORITY OF EMPLOYEES' CLAIMS OVER FLOATING CHARGES  

561    So far as the property of a company available for payment of creditors other than secured creditors is insufficient to meet payment of:

(a)  any debt referred to in paragraph 556(1)(e), (g) or (h);

(b)  any amount that pursuant to subsection 558(3) or (4) is a cost of the winding up, being an amount that, if it had been payable on or before the relevant date, would have been a debt referred to in paragraph 556(1)(e), (g) or (h); and

(c)  any amount in respect of which a right of priority is given by section 560;

payment of that debt or amount shall be made in priority over the claims of a chargee in relation to a floating charge created by the company and may be made accordingly out of any property comprised in or subject to that charge.