The following Restructuring & Insolvency guidance note Produced in partnership with Lexa Hilliard QC of Wilberforce Chambers provides comprehensive and up to date legal information covering:
The remuneration of the insolvency practitioner is governed by the Insolvency Act 1986, Statements of Insolvency Practice (SIP) 3.2 and 9 and the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 (for further reading on any transitional provisions that may apply, see Practice Note: The Insolvency (England and Wales) Rules 2016—Schedule 2: Transitional provisions [Archived]. For a summary of the changes affecting CVAs, see Practice Note: The Insolvency (England and Wales) Rules 2016—Part 2: Changes to company voluntary arrangements (CVAs) [Archived]).
A CVA may be proposed by the company or its directors, or its administrator or liquidator. Although the same information is required for each, there are practical differences in the disclosure required where the proposal for a CVA is made by the administrator or liquidator.
The IR 2016 state that the proposal must deal with the amount proposed to be paid to the nominee (as such) by way of remuneration and expenses (see SI 2016/1024, r 2.3(1)(g)).
The amounts allowable are:
disbursements made by the nominee prior to the decision approving the arrangement coming into effect, and any fees for their services agreed between themselves and the company or administrator or liquidator (see SI 2016/1024, r 2.43)
fees or expenses which are sanctioned by the terms of the arrangement, or would be payable, or correspond to
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