NO PRIORITY
CROWN AS CREDITOR
COMPANIES IN LIQUIDATION (P.A.) DUNEDIN, this day. Delivering judgment in the Supreme Court to-day in the case concerning the Companies Act, 1933, and Mutual Traders, Ltd., in which the question was raised of the Crown's right to payment from the assets of a company in liquidation in priority to the payment of ordinary creditors, Mr. Justice Kennedy ruled that the Crown was not entitled to the priority claimed,'and that the liquidator would be directed to act accordingly. His Honor's judgment quoted English cases, from which the law brought the administration of an insolvent company into line with the administration of estates in bankruptcy, giving the Crown no further rights as against ordinary creditors than, subject to statutory preferences, it had in England in bankruptcy or in the liquidation of an insolvent company.
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Bibliographic details
Auckland Star, Volume LXXIV, Issue 40, 17 February 1943, Page 4
Word Count
137NO PRIORITY Auckland Star, Volume LXXIV, Issue 40, 17 February 1943, Page 4
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