Rule 2.106 Fixing of remunerationF1

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

rule 2.106-2.109 applied (with modifications) by Bank Administration 2009 rule 58 59 60 61 Table
rule 2.106(2) words substituted by Insolvency 2010 Sch. 1 para. 90(2)(a)
rule 2.106(2) word omitted by Insolvency 2010 Sch. 1 para. 90(2)(b)
rule 2.106(2)(c) and word added by Insolvency 2010 Sch. 1 para. 90(2)(c)
rule 2.106(3A)-(3C) substituted for rule 2.106(3) by Insolvency 2010 Sch. 1 para. 90(3)
rule 2.106(5)(5A) words substituted by Insolvency 2010 Sch. 1 para. 90(5)
rule 2.106(5) words inserted by Insolvency 2010 Sch. 1 para. 90(4)
rule 2.106(5A) words inserted by Insolvency 2010 Sch. 1 para. 90(6)
rule 2.106(6) words inserted by Insolvency 2010 Sch. 1 para. 90(7)
rule 2.106(6) words added by Insolvency 2010 Sch. 1 para. 90(8)
rule 2.106-2.109 applied (with modifications) by Building Society Special Administration 2010 rule 60 61 62 63 Table
rule 4.54(5-CVL) substituted for rule 4.54(5) by Insolvency 2010 Sch. 1 para. 179(5)
rule 2.106(2)(b) words omitted by Insolvency 2015 rule 3(2)(a)
rule 2.106(2)(b) words substituted by Insolvency 2015 rule 3(2)(b)
rule 2.106(2A)-(2C) inserted by Insolvency 2015 rule 3(3)
rule 2.106(6) word substituted by Insolvency 2015 rule 3(4)

(1)

The administrator is entitled to receive remuneration for his services as such.

(2)

The remuneration shall be fixed either—

(a)

as a percentage of the value of the property with which he has to deal; or

(b)

by reference to the time properly given by the insolvency practitioner (as administrator) and his staff in attending to matters arising in the administration.

(3)

It is for the creditors' committee (if there is one) to determine whether the remuneration is to be fixed under paragraph (2)(a) or (b) and, if under paragraph (2)(a), to determine any percentage to be applied as there mentioned.

(4)

In arriving at that determination, the committee shall have regard to the following matters—

(a)

the complexity (or otherwise) of the case;

(b)

any respects in which, in connection with the company’s affairs, there falls on the administrator any responsibility of an exceptional kind or degree;

(c)

the effectiveness with which the administrator appears to be carrying out, or to have carried out, his duties as such; and

(d)

the value and nature of the property with which he has to deal.

(5)

If there is no creditors' committee, or the committee does not make the requisite determination, the administrator’s remuneration may be fixed (in accordance with paragraph (2)) by a resolution of a meeting of creditors; and paragraph (4) applies to them as it does to the creditors' committee.

(F25A)

In a case where the administrator has made a statement under paragraph 52(1)(b), if there is no creditors' committee, or the committee does not make the requisite determination, the administrator’s remuneration may be fixed (in accordance with paragraph (2)) by the approval of—

(a)

each secured creditor of the company: or

(b)

if the administrator has made or intends to make a distribution to preferential creditors—

(i)

each secured creditor of the company; and

(ii)

preferential creditors whose debts amount to more than 50% of the preferential debts of the company, disregarding debts of any creditor who does not respond to an invitation to give or withhold approval;

and paragraph (4) applies to them as it does to the creditors' committee.

(6)

If not fixed as above, the administrator’s remuneration shall, on his application, be fixed by the court.

(7)

Where there are joint administrators, it is for them to agree between themselves as to how the remuneration payable should be apportioned. Any dispute arising between them may be referred—

(a)

to the court, for settlement by order; or

(b)

to the creditors' committee or a meeting of creditors, for settlement by resolution.

(8)

If the administrator is a solicitor and employs his own firm, or any partner in it, to act on behalf of the company, profit costs shall not be paid unless this is authorised by the creditors' committee, the creditors or the court.

F3(9)

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Annotations

Textual amendments

F1: Pt. 2 substituted (15.9.2003) by The Insolvency (Amendment) Rules 2003 (S.I. 2003/1730), rule 1(2), Sch. 1 para. 9 (with rule 5(2)-(4))
F2: Rule 2.106(5A) inserted (1.4.2005) by The Insolvency (Amendment) Rules 2005 (S.I. 2005/527), rules 1(2), 15(1) (with rule 3(1))
F3: Rule 2.106(9) omitted (1.4.2005) by virtue of The Insolvency (Amendment) Rules 2005 (S.I. 2005/527), rules 1(2), 15(2) (with rule 3(1))