Waikato Savings Bank v Andrews Furniture Ltd - [1982] 2 NZLR 520

Company law — Winding up — Preferential payments — Payments to employees — Whether payments were moneys "advanced" - Under a pay-roll scheme operated by savings bank, company paid bank, by cheque, an amount covering its employees' wages — On pay day bank transferred employees' pay into their respective savings accounts with the bank — Three of company's cheques were dishonoured but bank had already transferred pay to employees' accounts — Company went into receivership — Whether bank was entitled, under s 308(3) of the Companies Act 1955, to priority over other creditors in respect of money paid to company's employees.