ABSTRACT
As described in Chapter 1, s556 of the Corporations Act 2001 (Cth) prescribes the statutory order of priorities that must be followed by a liquidator. This chapter discusses the expenses of the winding up and associated administration costs,1 including the liquidator’s remuneration priority. These administrative expenses are going to be part of every winding up and include the rent and other miscellaneous expenses usually expended in a liquidation or in the company’s prior insolvency administrations. These miscellaneous expenses will be referred to in this chapter as requisite expenses. This chapter then is divided into discussions on three major expenses: rent; requisite expenses, covering the many expenses incurred during the liquidation such as litigation costs, special expenses, rates and miscellany; and finally the liquidator’s remuneration. This is the order in which these items appear in the Corporations Act 2001 (Cth).
