Paragraph 2

(1)

The relevant enactment relating to companies' winding-up is section 319 of the 1948 c. 38.Companies Act 1948: but no priority under that enactment is extended by section 153(1) where a company is being wound up voluntarily merely for the purposes of reconstruction or amalgamation with another company.

(2)

For the operation of that enactment, " the relevant event" in section 153(2) is to be construed as follows—

(a)

where the company is wound up compulsorily—

(i)

if it had previously commenced to be wound up voluntarily, " the relevant event " means the passing of the winding-up resolution, and

(ii)

otherwise, it means the appointment (or first appointment) of a provisional liquidator or, in the absence of such an appointment, the making of the winding-up order ;

(b)

in any other case, " the relevant event" means the passing of the winding-up resolution.