Subject to the provisions of regulation 101 the proceeds of the assets of a co-operative being wound up must be applied as follows, namely—
| (a) | in the first place in paying expenses incurred by the liquidator in connection with the winding-up and the other costs of liquidation; |
| (b) | thereafter paying any amounts due by the co-operative with respect to the matters referred to in paragraph (b) of section 98A(1), or in paragraphs (a) to and including (e) of section 99(1), of the Insolvency Act, 1936 (Act 24 of 1936), which have been admitted or proved in terms of regulation 98, or, if the balance of the said proceeds is insufficient to pay the said amounts in full, in paying a proportionate share of each; |
| (c) | thereafter in paying outstanding salaries and wages of full -time employees of the co-operative which have been admitted or proved in terms of regulation 98 for a period not exceeding two months prior to the commencement of the winding-up of the cooperative, or, if the balance of the said proceeds is insufficient to pay the said salaries and wages in full, in paying a proportionate share of each; |
| (d) | thereafter in paying income tax for which the co-operative is liable; |
| (e) | thereafter in paying all other claims admitted or proved in terms of regulation 98, including any unpaid portions of secured claims contemplated in regulation 101(3) and any credit amounts in the members' fund, or, if the balance of the said proceeds is insufficient to satisfy the said claims, portions of claims and credit amounts in full, paying a proportionate share of each; |
| (f) | there after any residue must be applied in accordance with the distribution account. |
