RE GOLDLORY RESTAURANT LTD

Parties

Procedural Posture

Companies Winding Up — Summary Procedure (s227 F) / Chambers Determination on Statutory Construction and Court Practice Regarding Liquidator Remuneration

Legal Issues

1. 1 Whether remuneration of liquidators appointed under s227F should be assessed on a percentage basis or a time cost basis
2. 2 Whether rule 146(2) requires percentage basis as default absent court order
3. 3 Whether court must require special circumstances before departing from percentage basis in summary cases

Ratio Decidendi

The court held that section 196(2) and rule 146(2) give the court an unfettered discretion to determine the basis of remuneration of liquidators in summary cases; rule 146(2) does not impose the Official Receiver's percentage scale as the default and there is no requirement to show special circumstances to adopt a time cost basis; as a matter of practice the court will adopt the time cost basis for remuneration in summary (s227F) cases and it is appropriate to provide for that basis when making the summary procedure order.

Court Disposition

Issue determined in favour of adopting time cost basis; court has discretion and percentage basis is not the default in summary cases

Orders

• Time cost basis is to be adopted as the basis of remuneration for liquidators in summary cases and may be provided for upon making the summary procedure order under s227F
• Costs of the earlier hearing (23 March 2006) reserved; Official Receiver and participants to inform the court within 7 days what order as to costs they seek