However the commencement of winding up is deemed to "relate back" to the time when the petition was presented. Accordingly, all dispositions of property or transfers of shares made between the time of the lodging of the petition and the making of the order are set aside unless the court orders. Further, when a winding up order has been made no action or proceeding may be commenced or proceeded with against the company except by leave of the court. However this will not normally prevent a secured creditor from enforcing its security through an out of court process. Where a secured creditor wishes to enforce their security through court action, leave will normally be granted. The test for insolvency under Hong Kong law is whether a company is unable to pay its debts. A company is deemed to be unable to pay its debts in the following circumstances:  Where a company is deemed to be unable to pay its debts, this has a number of other effects in addition to the ability for a creditor to present a petition to wind it up. It also means that the directors are expected to discharge their duties in the best interest of the company's creditors rather than its shareholders; that transactions may be potentially vulnerable as voidable transactions, and that the right of creditors to set-off mutual debts may become impaired in relation to debts which are incurred during the period of insolvency. Once a liquidator is appointed the company is said to be in liquidation, or in winding up. The duty of the liquidator is to take possession and control of all of the assets which the company is beneficially entitled to, sell (or liquidate) them, and then distribute the proceeds among the creditors in accordance with the statutory scheme of priorities. The liquidator also has wide powers, including (amongst other things) the power to (a) to bring or defend any action or other legal proceeding in the name and on behalf of the company, and (b) to carry on the business of the company, so far as may be necessary for the beneficial winding up thereof. The priority of claims is broadly as follows: As between themselves, the claimants in each level rank "pari passu" as between themselves. Preferential claims are mostly sums due to employees (up to a limit) and certain sums due to Government. Secured creditors do not normally participate in the liquidation process and will normally have a prior ranking claim to any assets over which they have a security interest (and so will normally take ahead of all the claimants above). As between themselves, the priorities between claimants is determined by the law of priority as to who has a first ranking claim.