MarkD
9th Aug 2005, 16:42
Thought former Ansetters might find this interesting, albeit from another jurisdiction.
http://www.theregister.co.uk/2005/08/09/employees_before_administrators/
(snippet)
A UK judge has ruled that when a company goes into administration, cash owed to employees must take priority over the administrators' fees and administration costs.
The ruling could have implications for the administrators in cases like the collapse of Granville Technology Group, where companies make large-scale redundancies with little or no warning, according to a report on TheLawyer.com.
http://www.theregister.co.uk/2005/08/09/employees_before_administrators/
(snippet)
A UK judge has ruled that when a company goes into administration, cash owed to employees must take priority over the administrators' fees and administration costs.
The ruling could have implications for the administrators in cases like the collapse of Granville Technology Group, where companies make large-scale redundancies with little or no warning, according to a report on TheLawyer.com.