Emerald Ltd is in compulsory liquidation. The liquidator has realised a fund of 9,120 and has made this available for distribution. The liquidator's costs sum to 2,760. Needy Ltd has a floating charge over the assets of Emerald Ltd amounting to 4,800. Accrued holiday pay of 1,440 is owing to employees of Emerald Ltd. Sajid is owed 600 as the only unsecured creditor.

Q. Sajid has come to you with two key questions.

Firstly, will the ring-fencing provisions apply in favour of unsecured creditors? (Yes/No) Secondly, will the liquidator pay Sajid the full 600 he is owed? (Yes/No) Choose the correct answer, and explain how you have arrived at your designated correct answer including why you have dismissed the other options.

(a) Yes and Yes. (b) Yes and No. (c) No and No. (d) No and Yes.