Companies Act 2014 section 620

Debts which may be proved

Section 620 sets out the types of debts and claims that creditors may submit for proof during a company winding up, including how those debts are valued, how interest is treated, and the rules around rent, future debts, and unclaimed dividends.

• All contingent debts and all claims against the company — whether present or future, certain or uncertain, quantified or unquantified — may be admitted to proof in a winding up, with their value estimated as fairly as possible.
• Debts and claims are valued as at the commencement date of the winding up; rent and periodic payments are apportioned on a day-to-day basis up to that date, though a landlord retains the right to claim rent for any period the liquidator continues to occupy the premises.
• Where a fixed debt is overdue at the commencement date and no interest was agreed, the creditor may claim interest up to the commencement date at a rate not exceeding the appropriate rate, running from when the debt fell due or from the date of a written demand for payment.
• A creditor holding a debt not yet due at the commencement date may prove as if it were immediately payable and share in dividends, subject to a discount for early payment; dividends declared by the company more than six years before the commencement date and unclaimed during that period are not admissible to proof unless the company's constitution or share conditions provide otherwise.