In Chapter 8 of Part 4 of the Insolvency Act 1986 (c. 45) (winding up of companies: provisions of general application), before section 176A (under the heading “Property subject to floating charge”) insert—

“176ZAPayment of expenses of winding up (England and Wales)

(1)

The expenses of winding up in England and Wales, so far as the assets of the company available for payment of general creditors are insufficient to meet them, have priority over any claims to property comprised in or subject to any floating charge created by the company and shall be paid out of any such property accordingly.

(2)

In subsection (1)—

(a)

the reference to assets of the company available for payment of general creditors does not include any amount made available under section 176A(2)(a);

(b)

the reference to claims to property comprised in or subject to a floating charge is to the claims of—

(i)

the holders of debentures secured by, or holders of, the floating charge, and

(ii)

any preferential creditors entitled to be paid out of that property in priority to them.

(3)

Provision may be made by rules restricting the application of subsection (1), in such circumstances as may be prescribed, to expenses authorised or approved—

(a)

by the holders of debentures secured by, or holders of, the floating charge and by any preferential creditors entitled to be paid in priority to them, or

(b)

by the court.

(4)

References in this section to the expenses of the winding up are to all expenses properly incurred in the winding up, including the remuneration of the liquidator.”.

In Chapter 8 of Part 5 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)) (winding up of companies: provisions of general application), before Article 150A (under the heading “Property subject to floating charge”) insert—

“Payment of expenses of winding up150ZA

(1)

The expenses of winding up, so far as the assets of the company available for payment of general creditors are insufficient to meet them, have priority over any claims to property comprised in or subject to any floating charge created by the company and shall be paid out of any such property accordingly.

(2)

In paragraph (1)—

(a)

the reference to assets of the company available for payment of general creditors does not include any amount made available under Article 150A(2)(a);

(b)

the reference to claims to property comprised in or subject to a floating charge is to the claims of—

(i)

the holders of debentures secured by, or holders of, the floating charge, and

(ii)

any preferential creditors entitled to be paid out of that property in priority to them.

(3)

Provision may be made by rules restricting the application of paragraph (1), in such circumstances as may be prescribed, to expenses authorised or approved—

(a)

by the holders of debentures secured by, or holders of, the floating charge and by any preferential creditors entitled to be paid in priority to them, or

(b)

by the Court.

(4)

References in this Article to the expenses of the winding up are to all expenses properly incurred in the winding up, including the remuneration of the liquidator.”.