§ Mrs. PeacockTo ask the President of the Board of Trade if he will make it his policy to ensure that the fees of insolvency practitioners and the professionals they employ are levied at a fixed rate.
§ Mr. Jonathan EvansIn most types of insolvency, the creditors fix the fees of the insolvency practitioner, subject to review by the court. In an administrative receivership, the fee payable is a matter for agreement between the debenture holder appointing him, and the insolvency practitioner, although it may be reviewed by the court on the application of a liquidator. It would not be practicable to specify rates of payment for services provided to an insolvency practitioner by other professionals.
§ Mrs. PeacockTo ask the President of the Board of Trade if he will introduce legislation to require that an insolvency practitioner appointed as a receiver should be a person different from the accountant or insolvency practitioner which prepared the report on the company's affairs.
§ Mr. Jonathan EvansThe arguments for and against preventing accountants who act as advisers to banks from acting as administrative receivers of client companies have been considered and I am not convinced that the practice should be proscribed.