CORPORATIONS ACT 2001 - SECT 561 Priority of employees' claims over circulating security interests

CORPORATIONS ACT 2001 - SECT 561

    So far as the property of a company available for payment of creditors other than secured creditors is insufficient to meet payment of:

  (a)   any debt referred to in paragraph   556(1)(e), (g) or (h); and

  (b)   any amount that pursuant to subsection   558(3) or (4) is a cost of the winding up, being an amount that, if it had been payable on or before the relevant date, would have been a debt referred to in paragraph   556(1)(e), (g) or (h); and

  (c)   any amount in respect of which a right of priority is given by section   560;

payment of that debt or amount must be made in priority over the claims of a secured party in relation to a circulating security interest created by the company and may be made accordingly out of any property comprised in or subject to the circulating security interest.