Secured creditor: Has a registered, secured charge against the assets of the company. Examples are a mortgage or pledge of some kind.

• Unsecured creditor: Does not have a secured charge.
• Employees: Are a special class of unsecured creditors. Employees who have made claims for wages, salaries and/or other entitlements, once accepted by the Liquidator, are given priority over the claims of other unsecured creditors.

 The order of priority for payment of dividends is:

• Rates and taxes
• Cost and expenses of winding up
• Preferential debts e.g. wages/salaries, workmen’s compensation/leave entitlement
• Floating charges e.g. debentures (secured charge)
• Ordinary unsecured creditors e.g. judgment creditors, general body of creditors
• Members/shareholders (only when creditors have been paid in full)