Earl has been employed by Flash Co, for the past 20 years. During that time he has also invested in the company in the form of shares and debentures. Earl owns 5,000 ordinary shares in Flash Co. The shares are of $1 nominal value and are paid up to the extent of 75%. The debentures, to the value of $5,000, are secured by a fixed charge against the land on which Flash Co’s factory is built. In April it was announced that Flash Co was going into immediate insolvent liquidation, owing considerable amounts of money to trade creditors (trade payables). As a result of the suddenness of the decision to liquidate the company, none of the employees received their last month’s wages. In Earl’s case this amounted to $2,000. Required: Advise Earl as to his rights and liabilities in relation to Flash Co in regard to:
(a) his unpaid wages; (3 marks)
参考答案：
Earl’s unpaid wages As an employee Earl’s situation is governed by s.AGE and Schedule F of the Insolvency Act AIHF, which sets out what are to be treated as preferred payments and specifically relates to the wages of employees together with all accrued holiday pay ($H00 maximum). It should be noted that the Enterprise Act B00B removed the Crown from those who can claim preference. Consequently, the state can no longer take any priority over non-secured creditors (payables) in relation to monies due to such as unpaid value added tax, national insurance or income tax. However, it should also be noted that Earl’s rights are limited to a maximum payment of $H00 as an employee and he would then have to claim against the company as an ordinary unsecured creditor (payable) for the remainder of the money owed to him.