Section 311 — Companies Act 1993: Interest on claims

311 Interest on claims (1) The amount of a claim may include interest up to the date of commencement of the liquidation— (a) At such rate as may be specified or contained in any contract that makes provision for the payment of interest on that amount; or (b) In the case of a judgment debt, at such rate as is payable on the judgment debt. (2) If any surplus assets remain after the payment of all admitted claims, interest shall be paid at the prescribed rate on those claims from the date of commencement of the liquidation to the date on which each claim is paid, and if the amount of the surplus assets is insufficient to pay interest in full on all claims, payment shall abate rateably among all claims. (3) If any surplus assets remain after the payment of interest in accordance with subsection (2) of this section, interest shall be paid on all admitted claims referred to in subsection (1) of this section from the date of commencement of the liquidation to the date on which the claim is paid at a rate equal to the excess between the prescribed rate and the rate referred to in paragraph (a) or paragraph (b) of that subsection, as the case may be, and, if the amount of the surplus assets is insufficient to pay interest in full on all claims, payment shall abate rateably among all claims. (4) For the purposes of this section, prescribed rate means the prescribed rate within the meaning of section 87(3) of the Judicature Act 1908 . Subsection (1) was amended, as from 26 April 1999, by section 16 Companies Amendment Act 1999 (1999 No 19) by inserting the words “ date of ” . Subsection (3) was amended, as from 1 July 1994, by section 36 Companies Act 1993 Amendment Act 1994 (1994 No 6) by inserting the words “ a rate equal to the excess between the prescribed rate and ” . Subsection (3) was further amended, as from 26 April 1999, by section 16 Companies Amendment Act 1999 (1999 No 19) by inserting the words “ date of ” .