Remuneration and fees of an insolvency office-holder

Remuneration

The Insolvency Act 1986 and Insolvency (England and Wales) Rules 2016, SI 2016/1024, provide for remuneration of office-holders in both corporate and personal insolvencies.

Any court considering the question of office-holder remuneration will also apply part six of the Practice Direction on Insolvency Proceedings (PDIP) and so this should also be taken into account by office-holders.

Since 1 October 2015, there is a requirement for office-holders appointed on or after that date to provide an estimate of fees to creditors for approval before carrying out the job. That fee estimate must not be exceeded without prior approval of the creditors or the court (whoever fixed the basis and gave the original approval).

Office-holders should also take into consideration Statement of Insolvency Practice (SIP) 9, which provides guidelines on the basis of remuneration. While not legally binding, SIPs are best practice and failure to follow the same could lead to disciplinary action against the office-holder.

An office-holder's remuneration in the main will come from the assets of the company or bankrupt over which they are appointed. Creditors therefore have a

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