4. c. 16), and for companies in 1888 pursuant to the Preferential Payments in Bankruptcy Act 1888 (51 & 52 Vict.

Prior to that, all unsecured creditors ranked equally and without preference ("pari passu") in a series of statutes stretching back to the Statute of Bankrupts 1542.

If there is a shortfall, in those cases where someone earns in excess of the government limit, then they can claim preferentially too.

[6] following are the preferential creditors:- 1.all revenues, taxes, cesses and rates, whether payable to the Government or local authority, due to payment by the company with in 12 months before the date of commencement of winding up.

[7] In admiralty law, many legal systems accord certain claims preferential status where a ship is subject to arrest.