Companies Act 1985

Priority for third party advancing funds for wage-payments, etc.

13 Where any payment has been made—

(a) to any clerk, servant, workman or labourer in the employment of the company on account of wages or salary, or

(b) to any such clerk, servant, workman or labourer or, in case of his death, to any other person in his right, on account of accrued holiday remuneration,

out of money advanced by some person for that purpose, the person by whom the money was advanced has in the winding up a right of priority in respect of the money so advanced and paid up to the amount by which the sum in respect of which the clerk, servant, workman or labourer, or other person in his right, would have been entitled to priority in the winding up has been diminished by reason of the payment having been made.