An Administrator's Remuneration
Author: Chris Millar
In the first instance, the creditors committee fixes the basis of the administrator’s remuneration. If the creditors committee fails to do so, or there is no creditors committee, then the creditors, as a body, must be asked to fix the administrator’s remuneration. If the administrator has delivered a paragraph 52(1)(b) statement i.e. there will be nothing to distribute to unsecured creditors, then only the secured creditors and the preferential creditors need be asked.
If the administrator needs to seek approval as to his remuneration from the general body of creditors, then this will be under the decision procedure (IR 18.18(3) 2016).
If the creditors fail to set the basis of the administrator’s remuneration in one of the ways set out above, the administrator must then apply to the Court for an Order fixing the basis of his remuneration. Please bear in mind, that the administrator cannot apply to the Court for an Order if more than 18 months have passed since his appointment; in that event, only the creditors can fix the basis of the administrator’s remuneration.
For further advice contact Chris Millar, either by email c.millar@downslaw.co.uk or by phone on 01306 502225.
