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Payments to Liquidator

Payments to Liquidator

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Hello,

If a company is forced into compulsory liquidation and it has no assets to pay the liquidators remuneration, who pays the bill?

Does the official receiver outsource the work or would they complete the compulsory liquidation themselves?

Thank you for any help.

 

Replies (3)

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By Paul Crowley
30th Jun 2022 20:24

The person who forces the liquidation pays a fee

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Lisa Thomas
By Lisa Thomas - Insolvency Practitioner
01st Jul 2022 10:50

The official Receiver is appointed Liquidator in a compulsory Liquidation. They keep most cases in house and process them, themselves.

If there are insufficient assets available to cover their costs, the public effectively picks up the bill.

If the case is complicated, or there is a statutory timescale looming that the O.R can't meet they will farm the case out to a licensed Insolvency Practitioner on a rota. The IP has to decide whether to take the risk of accepting the case if the assets are speculative. If there are absolutely no assets the IP won't take the case on.

https://www.gov.uk/government/news/changes-to-official-receivers-fees

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By IWantToLearn
02nd Jul 2022 17:03

Thank you both, that's very helpful.

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