What is Pari Passu Distribution?
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What is Pari Passu Distribution?
The distribution of the assets of the wound up company will be
on the basis of "Pari passu".
Pari passu is a Latin phrase that literally means "on equal
footing. In the Companies Winding Up sense, for the same
class of creditors, each creditor will get the same percentage of
their debts. For example if there is a 10% distribution, the
creditor that is owed RM2 million will get RM200,000 as
dividend; the creditor that is owed RM4 million will get
RM400,000 as dividend;
The distribution of the assets of the wound up company will be
on the basis of "Pari passu".
Pari passu is a Latin phrase that literally means "on equal
footing. In the Companies Winding Up sense, for the same
class of creditors, each creditor will get the same percentage of
their debts. For example if there is a 10% distribution, the
creditor that is owed RM2 million will get RM200,000 as
dividend; the creditor that is owed RM4 million will get
RM400,000 as dividend;
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