Preferential Two-Month Wage Period counts from commencement of voluntary winding up when later continued by compulsory winding up.

For preferential wage claims under section 230 the relevant two month period is to be calculated from the commencement of winding up where a voluntary winding up is subsequently continued by compulsory winding up; the statute treats winding up as a continuous process and section 230(5) points to the commencement date of winding up when a voluntary winding up precedes compulsory proceedings, so wages earned within the two months before the voluntary winding up resolution rank as preferential. A contrasted English authority on fraudulent preferences was held inapplicable due to differing language and purpose.

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Issues: Whether, for the purpose of the two months preferential wage claim under section 230, the period "within the two months next before the said date" is to be reckoned from the date of the voluntary winding up resolution or from the date of the subsequent compulsory winding up order where a voluntary winding up is followed by a compulsory winding up.

Analysis: Section 230(1)(b) grants priority for wages earned "within the two months next before the said date." Section 230(5) defines the relevant "date" as the date of the winding up order in a compulsory winding up which had not previously commenced voluntarily, and otherwise as the date of the commencement of the winding up. Where a voluntary winding up precedes a compulsory winding up, the commencement of winding up occurs on the date of the voluntary resolution. The statutory language treats winding up as a continuous process that may commence voluntarily and continue by compulsory order; therefore the two month period must be counted from the commencement of the voluntary winding up. An English decision on a different provision concerning fraudulent preferences was distinguished on the basis that the two provisions differ in wording and purpose and thus do not control the construction of the preferential claim provision.

Conclusion: The two months period for preferential wage claims under section 230 is to be reckoned from the date of the voluntary winding up resolution where a voluntary winding up is later continued by a compulsory winding up; accordingly the claimants are entitled to preference measured from the date of the voluntary winding up.

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