§ Mr. WattsTo ask the Secretary of State for Trade and Industry (1) what plans she has to review(a) the way that companies are charged for administration and receivership services and (b) the ways in which assets of companies placed into administration or receivership are sold. [125197]
(2) What procedures are in place to control administration and receivership costs. [125198]
It is a matter for the judgment of the administrator or receiver, usually with the benefit of professional advice, as to the most appropriate method of disposing of the company's assets, with a view to achieving the best price for them. We have no plans to review this or the basis on which an administrator's or receiver's remuneration is fixed.
§ Mr. SutcliffeAn administrator is appointed by the court and is required to submit his proposals for achieving the purposes of the administration to the368W company's creditors and members. His remuneration is fixed by reference either to the value of the property with which he has to deal or the time properly given by him and his staff in attending to matters arising in the administration, and it is for the creditors' committee to determine it. If there is no committee or it does not make the required determination, the remuneration can be fixed by resolution of a meeting of the company's creditors. If not fixed in either of these ways, the administrator must apply to the court to fix his remuneration.
The costs of an administrative receiver, including his remuneration, are primarily a matter for agreement between the receiver and the secured creditor by whom he is appointed, but any liquidator appointed in relation to the company has the power to ask the court to fix the receiver's remuneration if he considers that necessary or appropriate.