4. Priority of distribution of assets

4. Priority of distribution of assets

Generally speaking, funds realized during the process of the wind up will be used in the following priority: -

1. To pay for the costs and expenses of the realization;
2. To pay for the costs and expenses of the petition for winding up;
3. To pay for the costs and expenses of the liquidator; and
4. If there are funds remaining, it will be used for distribution of dividends to the creditors on a pro rata basis with the following priority:
   1. Preferential creditors: For example, tax owed to the government and wages owed to employees of the company; and
   2. Ordinary creditors.