INS1570 - Company liquidation: Compulsory winding up

Liquidator's remuneration

A liquidator, other than the Official Receiver, is entitled to receive remuneration for their services, (see rule 4.127 of the Insolvency Rules 1986.)

The remuneration is fixed either

• as a percentage of the value of the assets which are realised and/or distributed, or
• based on the time properly given by the liquidator and their staff (‘time costs’).

The remuneration will be determined by

• the liquidation committee if there is one, or
• by resolution of a meeting of creditors, otherwise
• it is fixed on the Official Receiver scale rate (as in INS1385).

If the liquidator cannot obtain the agreement of creditors to the basis of remuneration and does not wish to make application to court then the Insolvency Office Holder’s remuneration scale (Schedule 6 of Insolvency Rules 1986) will apply (See INS1385 for further details).

Official Receiver as liquidator

The position is similar to that in bankruptcy (see INS1385: Official receiver as trustee). The Official Receiver’s general fee as liquidator is £2050.