Rule 129 Remuneration of administratorI1
Scotland
The administrator is entitled to receive remuneration—
to be paid out of the estate of the institution for services given—
in respect of the pursuit of Objectives 2 and 3,
as a consequence of a failure by the institution to safeguard relevant funds,
to be paid out of relevant funds for services given in respect of the pursuit of Objective 1.
The basis of remuneration in both cases in paragraph (1) must be fixed—
as a percentage of the value of the property with which the administrator has to deal,
by reference to the time properly given by the insolvency practitioner (as administrator) and their staff in attending to matters arising in the special administration, or
as a set amount.
The basis of remuneration may be fixed as any one or more of the bases set out in paragraph (2), and different bases may be fixed in respect of different things done by the administrator or administrator’s staff.
Subject to paragraph (5) and paragraph (6), where an administrator intends to submit a claim for the outlays reasonably incurred by the administrator and for remuneration within two weeks of the end of an accounting period, the administrator must submit to the creditors’ committee, or, if there is no creditors’ committee, to a meeting of creditors and customers, in respect of that period—
the administrator’s accounts of their intromissions with the institution’s assets for audit,
where funds are available after making allowance for contingencies, a scheme of division of the divisible funds,
a claim for—
any outlays reasonably incurred by the administrator,
the administrator’s remuneration, in respect of the pursuit of the Objectives in paragraph (1)(a).
The administrator may, at any time within two weeks after the end of an accounting period, in respect of the previous accounting period, submit to a creditors’ committee, or if there is no creditors’ committee, to a meeting of creditors and customers, in respect of that period—
the administrator’s accounts of its intromissions with the institutions’ assets for audit (such accounts of intromissions may include or consist of a progress report),
a claim for—
the outlays reasonably incurred by the administrator,
the administrator’s remuneration in respect of the pursuit of the Objectives under paragraph (1)(a).
Within two weeks after the end of an accounting period, the administrator must in respect of that period submit to the creditors’ committee (or if there is no creditors’ committee, to a meeting of customers) a claim for the outlays reasonably incurred by the administrator and for the administrator’s remuneration in respect of the pursuit of the Objective under paragraph (1)(b).
The administrator may, at any time before the end of an accounting period, submit to the creditors’ committee or, if there is no creditors’ committee, a meeting of creditors and customers (or in respect of a claim in respect of the pursuit of the Objective in paragraph (1)(b), a meeting of customers)—
an interim claim in respect of that period for the outlays reasonably incurred by the administrator,
an interim claim in respect of that period for remuneration,
and the body to whom the claim has been submitted may make an interim determination in relation to the amount of the outlays and remuneration payable to the administrator and, where they do so, they must take into account that interim determination when making their determination under paragraph (9)(a)(ii).
In fixing the amount of the administrator’s remuneration and outlays in respect of any accounting period, the body to whom the claim has been submitted may take into account any adjustment which it may wish to make in the amount of the remuneration and outlays fixed in respect of any earlier accounting period.
Within six weeks of the end of an accounting period—
the creditors’ committee or, as the case may be, a meeting of creditors and customers or a meeting of customers—
may audit the accounts (in respect of a submission under paragraph (2)),
must issue a determination fixing the amount of the outlays and the remuneration payable to the administrator,
the administrator must make the audited accounts, scheme of division and the said determination available for inspection by the members of the institution, the creditors or customers.
If the administrator’s remuneration and outlays have been fixed by determination of the creditor’s committee in accordance with paragraph (9)(a)(ii) and the administrator considers the amount to be insufficient, the administrator may request that the remuneration and outlays be increased by—
resolution of the creditors and customers in respect of claim under paragraph (1)(a), or
resolution of the customers in respect of a claim under paragraph (1)(b).
If the creditor’s committee fails to issue a determination in accordance with paragraph (9)(a)(ii), the administrator must submit their claim—
to a meeting of creditors and customers in respect of a claim under paragraph (1)(a), or
to a meeting of customers in respect of a claim under paragraph (1)(b),
and the meeting must issue a determination in accordance with paragraph (9)(a)(ii).
If the meeting of creditors and customers, or as the case may be, the meeting of customers fails to issue a determination in accordance with paragraph (11), then the administrator must submit their claim to the court and the court must issue a determination.
Where there are joint administrators—
it is for them to agree between themselves as to how the remuneration payable should be apportioned,
if they cannot agree as to how the remuneration payable should be apportioned, any one of them may refer the issue for determination—
by the court, or
by resolution of the creditors’ committee or a meeting of creditors and customers.
The administrator must insert the final determination in relation to the administrators’ outlays and remuneration in the sederunt book, together with the audited accounts and scheme of division.
Annotations
Commencement
- I1
Rule 129 in force at 19.12.2022, see rule 2