COMPANIES ACT - 1963 (ACT 179)

    Section - 89 - Payment of Preferntial Creditors Out of Assets Subject to a Floating Charge

    (1) Where a receiver is appointed on behalf of the holders of any debentures of the company secured by a floating charge or possession is taken by or on behalf of those debentureholders of any property subject to the charge, the debts which in every winding up are, under the provisions of section 41 of the Bodies Corporate (Official Liquidations) Act, 1963 (Act 180), to be paid in priority to all other debts, shall be paid out of any assets coming to the hands of the receiver or other person taking possession as aforesaid in priority to any claim for principal or interest in respect of the debentures.

    (2) If the receiver or such other person taking possession as aforesaid shall make any repayment in respect of the debenture before discharging all debts having priority in accordance with subsection (1) of this section, he shall be personally liable to discharge such debts to the extent of the repayment made by him.

    (3) The periods of time mentioned in the provisions referred to in section 41 of the Bodies Corporate (Official Liquidations) Act, 1963 (Act 180), shall be reckoned from the date of the appointment of the receiver or possession being taken, as the case may be.

    (4) Any payments made under this section shall be recouped as far as may be out of the assets of the company available for payment of general creditors.