How is a Liquidator remunerated?
Published: 11/12/2019 By Sylwia StarzynskaDealing with the liquidation of companies on a daily basis I often face the question “how does a liquidator get paid?”
The answer largely depends on whether or not the company being liquidated has any assets, for instance, goodwill, work in progress, plant & machinery, stock, book debts, cash at bank etc.
For example, I have recently been dealing with a liquidation of a furniture shop where the company owned stock. The liquidator sold the stock to a third party and then was able to be paid from the sale consideration received.
However, prior to drawing any fees for conducting a liquidation, the liquidator must seek approval from the company’s creditors by asking them to pass a resolution which will specify the basis upon which fees can be drawn.
In cases where the company doesn’t have any assets, the costs of the liquidation will often be discharged by Directors or the Shareholders personally.
For more information about a liquidator’s remuneration please contact our office on 020 8661 7878 or click here to fill out our contact form.