Corporations Amendment (Insolvency) Act 2007 (132 of 2007)

Schedule 1   Improving outcomes for creditors

Part 2   Better informing creditor decisions

Corporations Act 2001

30   At the end of section 473

Add:

(10) In exercising its powers under subsection (3), (5) or (6), the Court must have regard to whether the remuneration is reasonable, taking into account any or all of the following matters:

(a) the extent to which the work performed by the liquidator was reasonably necessary;

(b) the extent to which the work likely to be performed by the liquidator is likely to be reasonably necessary;

(c) the period during which the work was, or is likely to be, performed by the liquidator;

(d) the quality of the work performed, or likely to be performed, by the liquidator;

(e) the complexity (or otherwise) of the work performed, or likely to be performed, by the liquidator;

(f) the extent (if any) to which the liquidator was, or is likely to be, required to deal with extraordinary issues;

(g) the extent (if any) to which the liquidator was, or is likely to be, required to accept a higher level of risk or responsibility than is usually the case;

(h) the value and nature of any property dealt with, or likely to be dealt with, by the liquidator;

(i) whether the liquidator was, or is likely to be, required to deal with:

(i) one or more receivers; or

(ii) one or more receivers and managers;

(j) the number, attributes and behaviour, or the likely number, attributes and behaviour, of the company's creditors;

(k) if the remuneration is ascertained, in whole or in part, on a time basis:

(i) the time properly taken, or likely to be properly taken, by the liquidator in performing the work; and

(ii) whether the total remuneration payable to the liquidator is capped;

(l) any other relevant matters.

(11) Before remuneration is determined under paragraph (3)(a), the liquidator must:

(a) prepare a report setting out:

(i) such matters as will enable the committee of inspection to make an informed assessment as to whether the proposed remuneration is reasonable; and

(ii) a summary description of the major tasks performed, or likely to be performed, by the liquidator; and

(iii) the costs associated with each of those major tasks; and

(b) give a copy of the report to each member of the committee of inspection at the same time as the member is notified of the relevant meeting of the committee.

(12) Before remuneration is determined under subparagraph (3)(b)(i), the liquidator must:

(a) prepare a report setting out:

(i) such matters as will enable the company's creditors to make an informed assessment as to whether the proposed remuneration is reasonable; and

(ii) a summary description of the major tasks performed, or likely to be performed, by the liquidator; and

(iii) the costs associated with each of those major tasks; and

(b) give a copy of the report to each of the company's creditors at the same time as the creditor is notified of the relevant meeting of creditors.