Article 15 Insertion of New Rules 4.127A and 4.127B

After Rule 4.127 there is inserted—

“Liquidator’s entitlement to remuneration where it is not fixed under Rule 4.127

4.127A

(1)

This Rule applies where the liquidator is not the official receiver and his remuneration is not fixed in accordance with Rule 4.127.

(2)

The liquidator shall be entitled by way of remuneration for his services as such, to such sum as is arrived at by—

(a)

first applying the realisation scale set out in Schedule 6 to the monies received by him from the realisation of the assets of the company (including any Value Added Tax thereon but after deducting any sums paid to secured creditors in respect of their securities and any sums spent out of money received in carrying on the business of the company); and

(b)

then by adding to the sum arrived at under sub-paragraph (a) such sum as is arrived at by applying the distribution scale set out in Schedule 6 to the value of assets distributed to creditors of the company (including payments made in respect of preferential debts) and to contributories.

Liquidator’s remuneration where he realises assets on behalf of chargeholder

4.127B

(1)

This Rule applies where the liquidator is not the official receiver and realises assets on behalf of a secured creditor.

(2)

Where the assets realised for a secured creditor are subject to a charge which when created was a mortgage or a fixed charge, the liquidator shall be entitled to such sum by way of remuneration as is arrived at by applying the realisation scale set out in Schedule 6 to the monies received by him in respect of the assets realised (including any sums received in respect of Value Added Tax thereon but after deducting any sums spent out of money received in carrying on the business of the company).

(3)

Where the assets realised for a secured creditor are subject to a charge which when created was a floating charge, the liquidator shall be entitled to such sum by way of remuneration as is arrived at by—

(a)

first applying the realisation scale set out in Schedule 6 to monies received by him from the realisation of those assets (including any Value Added Tax thereon but ignoring any sums received which are spent in carrying on the business of the company); and

(b)

then by adding to the sum arrived at under sub-paragraph (a) such sum as is arrived at by applying the distribution scale set out in Schedule 6 to the value of the assets distributed to the holder of the charge.”.