Insolvency Act · s 164

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164.
Power to make over assets to employees
(1) On the winding up of a company (whether by the Court or voluntarily), the liquidator may, subject to the following provisions of this section, make any payment which the company has, before the commencement of the winding up, decided to provide for employees or former employees on cessation or transfer of business.
(2) The liquidator may, after the winding up has commenced, make any such provision as is mentioned in subsection (1) if —
(a) the company’s liabilities have been fully satisfied and provision has been made for the expenses of the winding up;
(b) the exercise of the power has been sanctioned by a resolution of the company; and
(c) any requirement of the articles of the company as to the exercise of making any such provision are complied with.

Insolvency 134
(3) Any payment which may be made by a company under this section (that is, a payment after the commencement of its winding up) may be made out of the company’s assets which are available to the members on the winding up.
(4) On a winding up by the Court, the exercise by the liquidator of his powers under this section is subject to the Court’s control, and any creditor or contributory may apply to the Court with respect to any exercise or proposed exercise of the power.
(5) Subsections (1) and (2) apply notwithstanding anything in section 88 or any rule of law to the contrary.

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s 164Power to make over assets to employees

(1)

On the winding up of a company (whether by the Court or voluntarily), the liquidator may, subject to the following provisions of this section, make any payment which the company has, before the commencement of the winding up, decided to provide for employees or former employees on cessation or transfer of business.

(2)

The liquidator may, after the winding up has commenced, make any such provision as is mentioned in subsection (1) if —

(a)

the company’s liabilities have been fully satisfied and provision has been made for the expenses of the winding up;

(b)

the exercise of the power has been sanctioned by a resolution of the company; and

(c)

any requirement of the articles of the company as to the exercise of making any such provision are complied with.

Insolvency 134

(3)

Any payment which may be made by a company under this section (that is, a payment after the commencement of its winding up) may be made out of the company’s assets which are available to the members on the winding up.

(4)

On a winding up by the Court, the exercise by the liquidator of his powers under this section is subject to the Court’s control, and any creditor or contributory may apply to the Court with respect to any exercise or proposed exercise of the power.

(5)

Subsections (1) and (2) apply notwithstanding anything in section 88 or any rule of law to the contrary.