WINDING UP 
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expressly included amongst the expenses. Payments on 
account of expenses may be made by the liquidator from 
time to time out of any funds in his hands. 
After the expenses, the company’s debts must be paid, 
and, first, it is to be observed that the right of the Crown, by 
virtue of its prerogatives, to be paid in priority to all other 
creditors, has been held to have been superseded by legislation, 
and its only existing right to priority is that conferred by 
s. 264 (1) (a) (see below) [Food Controller v. Cork (1923), A.C. 
h47]. Hence the first creditors to be paid are now those to 
whom priority is given by s. 264, which section is as follows :— 
264.—(1) In a winding up there shall be paid in priority 
to all other debts— 
fa) All parochial or other local rates due from the 
company at the relevant date and having become 
due and payable within twelve months next before 
that date, and all assessed taxes, land tax, property 
or income tax assessed on the company up to the 
fifth day of April next before that date, and not 
exceeding in the whole one year’s assessment ; 
All wages or salary (whether or not earned wholly 
or in part by way of commission) of any clerk 
or servant in respect of services rendered to the 
company during four months next before the 
relevant date, not exceeding fifty pounds; 
All wages of any workman or labourer not exceed- 
ing twenty-five pounds, whether payable for time or 
for piece-work, in respect of services rendered to 
the company during two months before the 
relevant date; 
Provided that where any labourer in husbandry 
has entered into a contract for the payment of a 
portion of his wages in a lump sum at the end of 
che year of hiring, he shall have priority in respect 
of the whole of such sum, or a part thereof, as the 
Court may decide to be due under the contract, 
proportionate to the time of service up to the 
relevant date; 
Unless the company is wound up voluntarily merely 
for the purposes of reconstruction or of amalgama- 
tion with another company, or unless the company 
has at the commencement of the winding up under 
such a contract with insurers as is mentioned in 
section seven of the Workmen's Compensation 
Act, 1925, rights capable of being transferred to 
Preferential 
Payments.