The first payment is made on the winding up of the company A. remuneration of the liquidator B. legal expenses C. preference creditors D. Expenses of winding up

The correct answer is: D. Expenses of winding up

The expenses of winding up are the first payments made on the winding up of a company. These expenses include the costs of appointing a liquidator, advertising the winding up, and holding meetings of creditors and shareholders. The liquidator is responsible for paying these expenses out of the company’s assets. If there are insufficient assets to cover the expenses, the liquidator may apply to the court for an order that the shareholders or directors of the company be personally liable for the expenses.

The other options are incorrect because they are not paid first on the winding up of a company.

• Remuneration of the liquidator is paid after the expenses of winding up.
• Legal expenses are paid after the expenses of winding up.
• Preference creditors are paid after the expenses of winding up and after the costs of the winding up have been paid.