§ Mr. VazTo ask the President of the Board of Trade what steps are in place to ensure there is transparency concerning liquidators' fees and expenses. [5457]
Mr. John M. TaylorIn any liquidation of an insolvent company the creditors acting through a liquidation committee or in general meeting may determine the level of remuneration to be paid to the liquidator. In order to be able to make an informed judgment concerning a liquidator's remuneration creditors need information as to the conduct and progress of the proceedings and insolvency practitioners therefore have an obligation to ensure that creditors are provided with such information. In this regard I was pleased to note the issue of statement of insolvency practice No. 9 by the Society of Practitioners of Insolvency which dealt with this issue and urged on the profession the maximum transparency in and about the setting of fees. That guidance has been adopted by the recognised professional bodies and is therefore now a standard against which future professional conduct can be measured.