The Minister of Finance v Peter L. Hawkes (Trustee)

• Jurisdiction: Bermuda
• Judgment Date: 15 March 1991
• Date: 15 March 1991
• Docket Number: Civil Jurisdiction 1990 : No. 376
• Court: Supreme Court (Bermuda)

In the Supreme Court of Bermuda

Astwood, CJ

Civil Jurisdiction 1990 : No. 376

BETWEEN:

The Ministry of Finance

Plaintiff

and

Peter L. Hawkes (as Trustee)

Defendant

Mr Archie Warner for the Plaintiff

Mr David Kessaram for the Defendant

Farrell v AlexanderUNK [1976] 2 All ER 721

Howard v Borneman (No.2)UNK [1974] 3 All ER 862

Companies Act 1981, s. 236

Statutory interpretation — Winding up — Whether taxes owed to Government are a priority debt — Intention of Parliament — Plain and ordinary meaning

JUDGMENT

By this summons the Plaintiff seeks the determination of this Court on the following question, namely, ‘whether subsection (2) of section 236 of the Companies Act 1981 (as amended) applies to paragraph (a) of subsection (1) of the said section and Act or as maybe’.

Section 236 of the Companies Act 1981 (‘the Act’), as amended in 1982, reads as follows:

‘236. (1) In a winding up there shall be paid in priority to all other debts—

• (a) all taxes owing to the Government and rates owing to a municipality at the relevant date;

• (b) all wages or salary, whether or not earned wholly or in part by way of commission or whether payable for time or piece work of any employee of the company in respect of services rendered to the company during four months next before the relevant date;

• (c) all accrued holiday remuneration becoming payable to any employee, or in the case of death to any other person in his right, on the termination of his employment before or by the effect of the winding-up order or resolution;

• (d) unless the company is being wound up voluntarily merely for the purposes of reconstruction or of amalgamation with another company, all amounts due in respect of contributions payable during the twelve months next before the relevant date by the company as the employer of any persons under the Contributory Pensions Act 1970 or any contract of insurance;

• (e) unless the company is being would up voluntarily merely for the purposes of reconstruction or of amalgamation with another company, or unless the company has, at the commencement of the winding up, under a contract with insurers capable of being transferred to and vested in the workman, all amounts due in respect of any compensation under the Workmen's Compensation Act 1965, being amounts which have accrued before the relevant date,

(2) Notwithstanding anything in paragraph (b) of the foregoing subsection, the sum to which priority is to be given...