Section 79
Priority of payments by liquidator
of Co-Operative Societies Act 1993
(1)
In the liquidation of a co-operative society whose registration has been revoked, funds of the co-operative society, including the funds in the Reserve Account, shall be applied first to the costs of liquidation, then to the discharge of the liabilities of the co-operative society, then to the payment of the share or subscription and then, if the by-laws of the co-operative society permit, to the payment of a dividend at the rate prescribed in the regulations for any period for which no dividend was paid.
(2)
The priority of payment of the unsecured debts of a co-operative society in such liquidation as is referred to in subsection (1)
shall rank in the following order:
(a)
firstly, the costs of liquidation, including the remuneration of the liquidator as provided under paragraph 76(g);
(b)
secondly, all amounts due to the Government of Malaysia on unsecured loans or advances and all amounts due to the
Employees Provident Fund;
(c)
thirdly, all deposit liabilities of such co-operative society;
(d)
fourthly, all wages or salaries (whether or not earned wholly or in part by way of commission) including any amount payable by way of allowance or reimbursement under any contract of employment or award or agreement regulating conditions of employment of any employee of such co-operative society, but not including any termination or retirement benefits payable on cessation of employment for any reason;
Co-operative Societies 77
(e)
fifthly, all amounts due in respect of worker’s compensation under any written law relating to worker’s compensation in relation to physical injury to a worker employed by such co-operative society;
(f)
sixthly, all moneys payable to any person, whether in respect of remuneration or compensation, in relation to the death of any employee of such co-operative society;
(g)
seventhly, all payments due to any public authority under any written law by way of tax or otherwise;
(h)
eighthly, all other debt of such co-operative society due to any unsecured creditor.
(3)
When the liquidation of a co-operative society has been closed and any person has not claimed or received what is due to him under the scheme of distribution, notice of the closing of the liquidation shall be published in the Gazette, and all claims against the funds of the co-operative society liquidated shall be proscribed when two years have elapsed from the date of the publication of the notice in the Gazette.
(4)
Any balance of the funds remaining after the expiry of the period of two years referred to in subsection (3) shall be credited into the Co-operative Central Fund.