What is included in the liquidator prescribed order of payments in compulsory liquidation?

In the context of compulsory liquidation, the order of payments during the liquidation process is governed by specific legal principles that prioritize how various types of debts are settled. The correct answer encompasses three distinct categories of claims: costs, preferential debts, and unsecured ordinary creditors.

Firstly, costs associated with the liquidation itself take precedence. These include administrative expenses such as the liquidator's fees, ensuring that the process can be conducted efficiently and fairly.

Next, preferential debts are those claims that are given priority over others by law. These typically include certain employee wages and contributions to employee pensions, which are protected to ensure that workers receive their due compensation in the event of a company's bankruptcy.

Finally, after addressing the costs and preferential debts, unsecured ordinary creditors are paid. These creditors do not have a secured interest in the company's assets, and their claims are settled only after higher-priority debts have been satisfied.

This structured order of payment ensures that the most critical claims are addressed first, reflecting the legal framework designed to protect certain stakeholders more than others during the liquidation process. Therefore, the inclusion of all three components—costs, preferential debts, and unsecured ordinary creditors—accurately represents the prescribed order of payments in compulsory liquidation.