The Fourth Schedule of the Insolvency Act is amended to amend
priority in which preferential creditors have to be paid.
Under the Fourth Schedule of the Insolvency Act (the
“IA”), unpaid wages and salaries, up
to a maximum of Rs 50,000, must now be paid after the liquidator or
Official Receiver has settled the cost of the liquidator under
sub-paragraph (1) of paragraph of the Fourth Schedule.
Prior to the amendment, unpaid wages of up to Rs30,000 had to be
paid to employees after payment in respect of, firstly, the cost of
the liquidator and, secondly, to Government and its Agencies (the
Mauritius Revenue Authority, the Registrar-General Local
Authorities) had been made.
Furthermore, under the amended ranking of preferential claims,
amounts due to the Mauritius Revenue Authority under the National
Pensions Act and the National Savings Fund Act now constitute an
item of payment relating to wages and salaries – such that
this item is now also listed under the
