Reid & Anor, Re Audit of their Intromissions With The Company's Estate [2010] ScotCS CSOH_138 (13 October 2010)

Reid & Anor, Re Audit of their Intromissions With The Company's Estate [2010] ScotCS CSOH_138 (13 October 2010)

The court found that the Noters acted properly and in accordance with their duties as liquidators, that all creditors were paid in full, and that the respondents' objections were either unfounded or did not justify withholding approval of the Noters' accounts or discharge. The court accepted the recommendations of the Reporter and Auditor as to the appropriate sum for outlays and remuneration, found the legal agents' fees recoverable, and ordered the company to pay the sums due. Procedural irregularities were waived as immaterial. The Noters were granted discharge from liability for their conduct in the liquidation.

Citation
[2010] ScotCS CSOH_138
Parties
Noters (joint Liquidators of Arakin Limited): John Charles Reid and James Bernard Stephen (of Deloitte & Touche LLP); Respondents (shareholders/directors of Arakin Limited): Mr and Mrs McNamara
Jurisdiction
Scotland
Judgment Date
13 October 2010
Procedural Posture
Audit of Intromissions in Liquidation (court of Session, Scotland) / Final Hearing on Liquidators' Accounts, Discharge, and Related Motions
Outcome
Noters' outlays and remuneration approved and fixed; Noters discharged from liability; company ordered to pay sums due; procedural irregularities waived; liquidation sisted (stayed).
Legal Topics
Liquidation Procedure, Liquidators' Remuneration and Discharge, Shareholder Rights, Creditor Claims, Court Audit of Intromissions
Insolvency Law Company Law Liquidation Procedure Liquidators' Remuneration and Discharge Shareholder Rights Creditor Claims Court Audit of Intromissions

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Parties

John Charles Reid and James Bernard Stephen (of Deloitte & Touche LLP)

Noters (joint Liquidators of Arakin Limited)

Mr and Mrs McNamara

Respondents (shareholders/directors of Arakin Limited)

Procedural Posture

Audit of Intromissions in Liquidation (court of Session, Scotland) / Final Hearing on Liquidators' Accounts, Discharge, and Related Motions

Legal Issues

  1. 1 Whether the Noters' (liquidators') outlays and remuneration should be approved and fixed by the court
  2. 2 Whether the Noters should be discharged from liability for their acts and omissions during the liquidation
  3. 3 Whether the Noters' legal agents' fees are recoverable from the company

Ratio Decidendi

The court found that the Noters acted properly and in accordance with their duties as liquidators, that all creditors were paid in full, and that the respondents' objections were either unfounded or did not justify withholding approval of the Noters' accounts or discharge. The court accepted the recommendations of the Reporter and Auditor as to the appropriate sum for outlays and remuneration, found the legal agents' fees recoverable, and ordered the company to pay the sums due. Procedural irregularities were waived as immaterial. The Noters were granted discharge from liability for their conduct in the liquidation.

Court Disposition

Noters' outlays and remuneration approved and fixed; Noters discharged from liability; company ordered to pay sums due; procedural irregularities waived; liquidation sisted (stayed).

Orders

  • Noters entitled to £265,000 plus VAT for outlays and remuneration, and £1,025 for Category 1 Disbursements, as recommended by Reporter and Auditor.
  • Noters' legal agents (McGrigors) entitled to £206,317.14 as taxed by Auditor of Court.