RE GOLDLORY RESTAURANT LTD

Parties

Procedural Posture

Company Winding Up Summary Procedure / Determination of Basis of Liquidators' Remuneration on Reference From Master

Legal Issues

1. 1 Whether remuneration of liquidators appointed under s227F should be fixed on a percentage basis or a time cost basis pursuant to s196(2) and rule146(2)
2. 2 Whether the percentage basis in rule146(2) is a mandatory default absent court order or whether the court has unfettered discretion
3. 3 Whether special circumstances must be shown to depart from percentage basis in summary cases

Ratio Decidendi

The court held that under s196(2) and rule146(2) the court's discretion is unfettered and the percentage basis applicable to the Official Receiver is not the mandatory default; as a matter of practice the time cost basis should be adopted for remuneration of liquidators in summary winding‑up cases and should be provided for when the summary procedure order is made.

Court Disposition

Issue determined in favour of adopting time cost basis as the practice for remuneration of liquidators in summary winding‑up cases; court discretion affirmed that percentage basis is not the default

Orders

• Time cost basis to be adopted as the basis of remuneration in summary procedure winding‑up orders and should be provided for on making of the summary procedure order
• Costs of the earlier hearing reserved; Official Receiver and participants to inform court by letter within 7 days what order as to costs they would seek