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A Creditor's Guide to Liquidators' Fees

7. Progress reports and requests for further information

7.1 The liquidator is required to send annual progress reports to creditors. The reports must include:

• details of the basis fixed for the remuneration of the liquidator (or if not fixed at the date of the report, the steps taken during the period of the report to fix it);
• if the basis has been fixed, the remuneration charged during the period of the report, irrespective of whether it was actually paid during that period (except where it is fixed as a set amount, in which case it may be shown as that amount without any apportionment for the period of the report);
• if the report is the first to be made after the basis has been fixed, the remuneration charged during the periods covered by the previous reports, together with a description of the work done during those periods, irrespective of whether payment was actually made during the period of the report;
• a statement of the expenses incurred by the liquidator during the period of the report, irrespective of whether payment was actually made during that period;
• a statement of the creditors’ rights to request further information, as explained in paragraph 7.2, and their right to challenge the liquidator’s remuneration and expenses.

7.2 Within 21 days of receipt of a progress report (or 7 business days where the report has been prepared for the purposes of a meeting to receive the liquidator’s resignation) a creditor may request the liquidator to provide further information about the remuneration and expenses set out in the report. A request must be in writing, and may be made either by a secured creditor, or by an unsecured creditor with the concurrence of at least 5% in value of unsecured creditors (including himself) or the permission of the court.

7.3 The liquidator must provide the requested information within 14 days, unless he considers that:

• the time and cost involved in preparing the information would be excessive, or
• disclosure would be prejudicial to the conduct of the liquidation or might be expected to lead to violence against any person, or
• the liquidator is subject to an obligation of confidentiality in relation to the information requested,

in which case he must give the reasons for not providing the information.

Any creditor may apply to the court within 21 days of the liquidator’s refusal to provide the requested information, or the expiry of the 14 days time limit for the provision of the information.

1. Introduction
2. Liquidation Procedure
3. The Liquidation Committee
4. Fixing the Liquidator’s Remuneration
5. Review of Remuneration
6. What information should be provided by the Liquidator?
7. Progress reports and requests for further Information
8. Provision of information - additional requirements
9. What if a creditor is dissatisfied?
10. What if the liquidator is dissatisfied?
11. Other matters relating to remuneration
12. Effective date

Remuneration of insolvency office holders in England and Wales.

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