In general the order of priority of payment to creditors of an insolvent company is:

• Liquidator's costs in getting secured property and paying creditors;
• Employee entitlements (wages; annual leave; retrenchment payments) and superannuation;
• Secured creditors (those with registered security agreements; security; liens; mortgages and charges);
• Ordinary unsecured creditors (not being secured or preferential); and
• Return of invested capital to shareholders.

Businesses should ensure that securities over buyers' assets (whether movable or immovable) are registered: secured creditors may recover amounts due wholly or partly from the assets secured in priority to unsecured creditors.

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