Creditors

The general rule is that all liabilities of the company are provable in the winding up and that all provable claims rank equally; but there are a number of creditors given priority, especially employees. Provision is made for the computation of claims, especially those which are unliquidated, future or contingent. Some claims are deferred to those of other creditors, notably claims by a member in their capacity as such. There are detailed provisions in the CR for the submission of proofs of debt, either formally or informally, for the admission or rejection of proofs and for appeals to the court against the rejection of a proof wholly or in part. The CR also provide for the notification and declaration of dividends to creditors and for payment of arrears to those creditors whose proof is admitted after a dividend has been paid.

Secured creditors can, in general, opt to stay outside the winding up and rely on their security, or to surrender their security and participate in the winding up. There are special provisions applicable to secured creditors, most notably those in the Personal Property Securities Act 2009 (Cth) (PPSA), which came into effect on 31 January 2012.

See Creditors.