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4. Priority of distribution of assets

Generally speaking, funds realized during the process of the wind up will be used in the following priority: -

 

  1. To pay for the costs and expenses of the realization;
  2. To pay for the costs and expenses of the petition for winding up;
  3. To pay for the costs and expenses of the liquidator; and
  4. If there are funds remaining, it will be used for distribution of dividends to the creditors on a pro rata basis with the following priority:
    1. Preferential creditors: For example, tax owed to the government and wages owed to employees of the company; and
    2. Ordinary creditors.
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