OpenLegislation

Rule 4.218 General rule as to priorityI1C1C2C3

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)
(1)

The expenses of the liquidation are payable out of the assets in the following order of priority—

F1(a)

expenses or costs which—

(i)

are properly chargeable or incurred by the official receiver or the liquidator in preserving, realising or getting in any of the assets of the company or otherwise relating to the conduct of any legal proceedings which he has power to bring or defend whether in his own name or the name of the company;

(ii)

relate to the employment of a shorthand writer, if appointed by an order of the court made at the instance of the official receiver in connection with an examination; or

(iii)

are incurred in holding an examination under Rule 4.214 (examinee unfit) where the application for it was made by the official receiver:

(b)

any other expenses incurred or disbursements made by the official receiver or under his authority, including those incurred or made in carrying on the business of the company;

F2(c)

the fees payable under any order made under section 414 F3or section 415A, including those payable to the official receiver (other than the fee referred to in sub-paragraph (d)(i) below), and any remuneration payable to him under general regulations;

(d)
(i)

the fee payable under any order made under section 414 for the performance by the official receiver of his general duties as official receiver;

(ii)

any repayable deposit lodged under any such order as security for the fee mentioned in sub-paragraph (i);

(e)

the cost of any security provided by a provisional liquidator, liquidator or special manager in accordance with the Act or the Rules;

(f)

the remuneration of the provisional liquidator (if any);

(g)

any deposit lodged on an application for the appointment of a provisional liquidator;

(h)

the costs of the petitioner, and of any person appearing on the petition whose costs are allowed by the court;

(j)

the remuneration of the special manager (if any);

(k)

any amount payable to a person employed or authorised, under Chapter 6 of this Part of the Rules, to assist in the preparation of a statement of affairs or of accounts;

(l)

any allowance made, by order of the court, towards costs on an application for release from the obligation to submit a statement of affairs, or for an extension of time for submitting such a statement;

F4(la)

the costs of employing a shorthand writer in any case other than one appointed by an order of the court at the instance of the official receiver in connection with an examination;

(m)

any necessary disbursements by the liquidator in the course of his administration (including any expenses incurred by members of the liquidation committee or their representatives and allowed by the liquidator under Rule 4.169, but not including any payment of F5corporation tax in circumstances referred to in sub-paragraph (p) below);

(n)

the remuneration or emoluments of any person who has been employed by the liquidator to perform any services for the company, as required or authorised by or under the Act or the Rules;

(o)

the remuneration of the liquidator, up to any amount not exceeding that which is payable F6under Schedule 6;

(p)

the amount of any F7corporation tax on chargeable gains accruing on the realisation of any asset of the company (without regard to whether the realisation is effected by the liquidator, a secured creditor, or a receiver or manager appointed to deal with a security);

(q)

the balance, after payment of any sums due under sub-paragraph (o) above, of any remuneration due to the liquidatorF8;

(r)

any other expenses properly chargeable by the liquidator in carrying out his functions in the liquidation.

F9(2)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations

Textual amendments

F1

Rule 4.218(1)(a) substituted (1.1.2003) by The Insolvency (Amendment) (No. 2) Rules 2002 (S.I. 2002/2712), rule 1(1), Sch. para. 23(a) (with rule 4(2))

F2

Rule 4.218(1)(c)(d) substituted (1.4.1995) by The Insolvency (Amendment) Rules 1995 (S.I. 1995/586), rule 1, Sch. para. 1 (with rule 3(2))

F3

Words in rule 4.218(1)(c) inserted (1.4.2004) by The Insolvency (Amendment) Rules 2004 (S.I. 2004/584), rules 1(2), 22

F4

Rule 4.218(1)(la) inserted (1.1.2003) by The Insolvency (Amendment) (No. 2) Rules 2002 (S.I. 2002/2712), rule 1(1), Sch. para. 23(b) (with rule 4(2))

F5

Word in rule 4.218(1)(m) substituted (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. 79

F6

Words in rule 4.218(1)(o) substituted (1.4.2005) by The Insolvency (Amendment) Rules 2005 (S.I. 2005/527), rules 1(2), 32 (with rule 3(2))

F7

Word in rule 4.218(1)(p) substituted (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. 79

F8

Rule 4.218(1)(r) inserted (1.1.2003) by The Insolvency (Amendment) (No. 2) Rules 2002 (S.I. 2002/2712), rule 1(1), Sch. para. 23(c) (with rule 4(2))

F9

Rule 4.218(2)(3) omitted (1.1.2003) by virtue of The Insolvency (Amendment) (No. 2) Rules 2002 (S.I. 2002/2712), rule 1(1), Sch. para. 23(d) (with rule 4(2))

Modifications

C1

Rule 4.218 applied (20.4.2003) by The Insurers (Reorganisation and Winding Up) Regulations 2003 (S.I. 2003/1102), regs. 1, 30(1) (with reg. 3)

C2

Rule 4.218 applied (18.2.2004) by The Insurers (Reorganisation and Winding Up) Regulations 2004 (S.I. 2004/353), regs. 1, 30(1)

C3

Rule 4.218 modified (6.3.2008) by The Regulated Covered Bonds Regulations 2008 (S.I. 2008/346), reg. 1(1), Sch. para. 7(2)

Commencement

I1

Rule 4.218 in force at 29.12.1986, see rule 0.1