RE GOLDLORY RESTAURANT LTD

Parties

Procedural Posture

Company Winding Up (summary Procedure) / Determination of Legal Issue on Liquidators' Remuneration Basis

Legal Issues

1. 1 Whether remuneration of liquidators appointed under s227F should be fixed on percentage basis or time cost basis
2. 2 Whether rule 146(2) or Companies (Fees and Percentages) Order establishes a default percentage basis in summary cases
3. 3 Whether special circumstances must be shown to depart from percentage basis

Ratio Decidendi

The court held that s196(2) and rule 146(2) afford the court unfettered discretion and that the percentage basis applicable to the Official Receiver is not the default; as a matter of practice the time cost basis should be adopted for remuneration in summary winding-up cases and should be provided for when a summary procedure order under s227F is made.

Court Disposition

Issue determined in favour of adopting time cost basis for liquidators in summary winding-up cases; court exercise of discretion confirmed

Orders

• Time cost basis to be adopted as the basis of remuneration in summary procedure cases and to be provided for upon making the summary procedure order under s227F
• Costs of the earlier hearing reserved; Official Receiver and participants to inform the court by letter within 7 days what order as to costs they seek