Office Holder’s Fees are determined as follows:
A creditors' committee (if there is one) agrees the Office Holder’s fees and fee structure for the life of a case. Otherwise, it can be fixed by the creditors or the court. Although the fee can be fixed as a percentage of the value of the property dealt with, it is normally based on the following factors:
- The time properly spent by the office holder and his staff;
- the complexity of the case;
- any exceptional responsibility borne by the office holder;
- the effectiveness with which the office holder carries out his duties;
- and the value and nature of the company's assets.
Our UK insolvency trade body, R3, has produced a separate guide explaining insolvency office holders’ remuneration, which is available upon request.
The above operates for fees applying in Administrations, Company Voluntary Arrangements (CVAs), Liquidations, Bankruptcies and Individuals Voluntary Arrangements (IVAs). Further details are contained in Statement of Insolvency Practice 9 (SIP 9) – click here.