RE GOLDLORY RESTAURANT LTD

Parties

Procedural Posture

Company Winding Up (summary Procedure Under S227 F) / Determination of Legal Issue Referred by Master / Interlocutory Determination on Basis of Liquidator Remuneration

Legal Issues

1. 1 Whether the remuneration of liquidators appointed under s227F should be assessed on a percentage (commission) basis or on a time cost basis
2. 2 Whether rule 146(2) and the Companies (Fees and Percentages) Order impose a default percentage basis absent a court order
3. 3 Whether the court requires special circumstances to depart from percentage basis in summary cases and when the basis should be determined

Ratio Decidendi

The court held that s196(2) confers an unfettered discretion to fix liquidator remuneration in summary cases and that rule146(2) does not mandate the Official Receivers percentage scale as the default; as a matter of practice the time cost basis should be adopted and provided for when a summary procedure order under s227F is made, because this accords with the statutory purpose, practical realities of minimal realisations and the Panel T subsidy/tender framework.

Court Disposition

Issue determined in favour of adopting time cost basis as the standard practice for remuneration of liquidators in summary cases; court retains discretion under s196(2) and percentage is not the default

Orders

• Time cost basis to be adopted as the basis of remuneration for liquidators in summary winding-up cases under s227F and to be provided for upon making a summary procedure order
• Decision that s196(2) gives the court unfettered discretion and rule146(2) does not impose the Official Receivers percentage scale as the default