UGDJ Ltd and Laverty and Ors [2007] JRC 190 (03 October 2007)

UGDJ Ltd and Laverty and Ors [2007] JRC 190 (03 October 2007)

Where directors, at the encouragement of creditors, voluntarily bring a representation to court to resolve a deadlock in the winding-up process, their internal remuneration for time reasonably spent may be treated as costs of the winding-up under Article 165, subject to reasonableness and prior agreed rates.

Citation
[2007] JRC 190
Parties
Company in Liquidation: UGDJ Limited; Joint Liquidators (proposed and Appointed): Messrs Rabet and Roberts; Proposed Third Liquidator: Mr O'Connell (KPMG); Director/chairman of Meeting: Mr Gee; Advocate for Major Creditor: Mr Dessain; Advocate for Directors: Mr James
Jurisdiction
Jersey
Judgment Date
03 October 2007
Procedural Posture
Creditors' Winding Up Representation / Costs Determination Post Liquidator Appointment
Outcome
Directors' internal expenses for bringing the representation are to be treated as costs of the winding-up under Article 165.
Legal Topics
Liquidator Appointment, Costs of Winding Up, Directors' Remuneration
Insolvency Company Law Liquidator Appointment Costs of Winding Up Directors' Remuneration

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Parties

UGDJ Limited

Company in Liquidation

Messrs Rabet and Roberts

Joint Liquidators (proposed and Appointed)

Mr O'Connell (KPMG)

Proposed Third Liquidator

Mr Gee

Director/chairman of Meeting

Mr Dessain

Advocate for Major Creditor

Mr James

Advocate for Directors

Procedural Posture

Creditors' Winding Up Representation / Costs Determination Post Liquidator Appointment

Legal Issues

  1. 1 Whether directors' internal expenses for bringing a representation at creditors' request are costs of the winding-up under Article 165

Ratio Decidendi

Where directors, at the encouragement of creditors, voluntarily bring a representation to court to resolve a deadlock in the winding-up process, their internal remuneration for time reasonably spent may be treated as costs of the winding-up under Article 165, subject to reasonableness and prior agreed rates.

Court Disposition

Directors' internal expenses for bringing the representation are to be treated as costs of the winding-up under Article 165.

Orders

  • Directors' internal remuneration for time reasonably spent in connection with the representation to be treated as costs of the winding-up, payable at the agreed pre-liquidation hourly rate, subject to review by the liquidators and, if necessary, the court.