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Rule 4.181 Debts of insolvent company to rank equallyI1

England and Wales

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

  • rule 4.54(5-CVL) substituted for rule 4.54(5) by Insolvency 2010 Sch. 1 para. 179(5)
C1(F11)

(NO CVL APPLICATION)

Debts other than preferential debts rank equally between themselves in the winding up and, after the preferential debts, shall be paid in full unless the assets are insufficient for meeting them, in which case they abate in equal proportions between themselves.

F2(2)

Paragraph (1) applies whether or not the company is unable to pay its debts.

Annotations

Textual amendments

F1

Rule 4.181 renumbered as rule 4.181(1) (11.1.1988 with application in accordance with rule 3(1)(2)) by The Insolvency (Amendment) Rules 1987 (S.I. 1987/1919), rule 1, Sch. para. 77

F2

Rule 4.181(2) added (11.1.1988 with application in accordance with rule 3(1)(2)) by The Insolvency (Amendment) Rules 1987 (S.I. 1987/1919), rule 1, Sch. para. 77

Modifications

C1

Rule 4.181(1) modified (6.3.2008) by The Regulated Covered Bonds Regulations 2008 (S.I. 2008/346), reg. 1(1), Sch. para. 7(1)

Commencement

I1

Rule 4.181 in force at 29.12.1986, see rule 0.1