Q&As

If a liquidator’s fee proposal is rejected by creditors under the decision-making procedure under the Insolvency (England and Wales) Rules 2016, SI 2016/1024, r 18.20, must they then apply to court for a resolution on their fees or can they go back to creditors with a second proposal under the same procedure before asking the court to resolve the issue?

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Produced in partnership with Ian Defty of CVR Global
Published on LexisPSL on 17/01/2019

The following Restructuring & Insolvency Q&A produced in partnership with Ian Defty of CVR Global provides comprehensive and up to date legal information covering:

  • If a liquidator’s fee proposal is rejected by creditors under the decision-making procedure under the Insolvency (England and Wales) Rules 2016, SI 2016/1024, r 18.20, must they then apply to court for a resolution on their fees or can they go back to creditors with a second proposal under the same procedure before asking the court to resolve the issue?

The Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 18.16 sets out the remuneration principles. These principles provide that an office-holder is entitled to remuneration (IR 2016, SI 2016/1024, r 18.16(1)) and under IR 2016, SI 2016/1024, r 18.16(2), that remuneration must be fixed as a percentage value of property or assets realised and/or distributed; time properly spent or as a set amount or a combination of the above bases.

Where an office-holder proposes to take all or any part of the remuneration on the basis set out in IR 2016, SI 2016/1024, r 18.16(2), the office-holder must, prior to the determination of which of the bases set out in IR 2016, SI 2016/1024, r 18.16(2) are to be fixed, deliver to the creditors a fees’ estimate; and details of the expenses the office-holder considers will be, or are likely to be, incurred (IR 2016, SI 2016/1024, r 18.16(4)).

IR 2016, SI 2016/1024, r 18.20 goes on to state that:

‘(2) It is for the committee to determine the basis of remuneration

(3) If the committee fails to determine the basis of rem

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