§ Mr. Marlow
To ask the Secretary of State for Trade and Industry what review and assessment he has undertaken of the adequacy of the supervision and control of the level of fees charged by liquidators; and if he will make a statement.
§ Mr. Redwood
Prior to 1986 there were complaints from creditors that there was inadequate knowledge of the basis on which liquidators' fees were calculated and that it was therefore difficult to challenge the amount of them. The Insolvency Act sets out how remuneration should be calculated and makes provision for the supervision and control of that remuneration by creditors, either through a liquidation committee or in general meeting. I am anxious that creditors take steps to exercise that control which includes the power to make application to the court for an order to reduce remuneration which they consider excessive. Where creditors do not resolve on the matter, remuneration may be taken equivalent only to that payable where an official receiver acts as liquidator.