Read the full judgment text of CACV 000125/1985 on BabelCite. This Court of Appeal judgment.
1. Until 1984 the general rule for the distribution of assets in both bankruptcy and liquidation was that ordinary creditors ranked pari passu. This was changed in that year by the enactment of two nearly identical sections, namely section 265(5B) of the Companies Ordinance (Cap. 32) and section 38(5B) of the Bankruptcy Ordinance (Cap. 6). The section with which we are concerned (this section) is section 265(5B) which provides : -