Distribution of Assets by the Liquidator [ Section 53 ]

Distribution priority under Section 53 establishes a statutory order for paying liquidation costs and stakeholders from proceeds.

Distribution of proceeds in corporate liquidation is governed by Section 53 and the Liquidation Process Regulations: the liquidator realises assets, deposits receipts into a corporate debtor bank account in liquidation, and distributes proceeds in statutory priority after deducting insolvency resolution and liquidation costs and the liquidator's fees. Within each equally ranked class debts are paid in full or pro rata if proceeds are insufficient; contractual arrangements disturbing equal ranking are disregarded. Regulations require filing stakeholder lists and asset memorandum before distribution, permit distribution of unsold peculiar assets with authority permission, and allow realisation of uncalled capital from contributories.