RE GOLDLORY RESTAURANT LTD

Parties

Procedural Posture

Company Winding Up (summary Procedure) / Hearing for Determination of Basis of Liquidators' Remuneration (interlocutory Determination)

Legal Issues

1. 1 Whether remuneration of liquidators appointed under s227F should be assessed on percentage basis or time cost basis
2. 2 Whether rule 146(2) imposes percentage basis as default absent court order
3. 3 Whether special circumstances must be shown to depart from percentage basis

Ratio Decidendi

Sections 196(2) and rule 146(2) confer on the court an unfettered discretion and do not require the percentage basis applicable to the Official Receiver to be the default; as a matter of established and appropriate practice the court will adopt the time cost basis for remuneration of liquidators in summary cases under s227F and such basis should be provided for when the summary procedure order is made.

Court Disposition

Issue determined in favour of adopting time cost basis for remuneration of liquidators in summary cases; court confirms discretion under s196(2) and rejects percentage basis as default

Orders

• Time cost basis to be adopted as the basis of remuneration for liquidators in summary cases under s227F and to be provided for upon the making of the summary procedure order
• The percentage basis pursuant to the Companies (Fees and Percentages) Order is not the default basis where the court exercises its discretion under s196(2)