pass account.

probate of the will of the sd C., deceased, Let the sd L. be at libty to Form 450. carry in and pass the final account of the sd C., deceased, as such off. deceased liq. from the foot of the last account to the time of his decease. And liquidator to Let the sd L. pay the balance (if any) which may be certified to be due from the estate of the sd C., deceased, into the Bank of England to the credit of the account of the off. liq. of the sd co. And upon such paymt or if it shall be certified that there is not any balance due let the recognisance dated, &c., be vacated: And let the costs of the sd L. of this applicon and consequent thereon as between solor and client be pd by the sd S., and allowed to him on passing his accounts. Ottoman Co., Limtd., Bacon, V.-C., 15 Ap. 1878. 828 B.

Let, &c., on the pt of N., one of the sureties for A., the off. liq. of Form 451. the above-named co, that the sd N. may be at libty to attend at his own Summons by expense the passing of the accounts of the sd A. as such off. liq.

surety for liberty to

In special cases, e.g., where the liquidator has become bankrupt, his surety attend passing may obtain liberty to attend as above: See Dan. Pr. 1606; Seton, 446. And of account. see Birmingham Brewery Co., 48 L. T. 362.

a creditor of the above-named co, Form 452.

attachment

Upon the applicon of W. of and upon hearing the solors for the applicant and for the off. liq. of co, Liberty to and upon reading the order dated 29 Jan., 1878, and the afft of S. filed issue an 28 Mar., 1878, of service of the sd order upon the sd H., Let the ap- against official plicant be at libty to issue an attachmt against the sd H. for breach liquidator. of the sd order of 29 Jan., 1878. Norman Patent Sewing Machine Co., Hall, V.-C., 10 Ap., 1878. B. 535.

On the pt of the off. liq. of the above-named co, that he may be at Form 453. libty to retain and pay himself out of the assets of the co the sum of Summons by -7. on account of his remuneration as such off. liq.

official liquidator for

Section 93 of the Act of 1862 provides that there shall be paid to the official liberty to liquidator such salary or remuneration, by way of percentage or otherwise, as retain money the Court may direct; and if more liquidators than one are appointed, such on account of remuneration shall be distributed among them in such proportions as the Court directs. See also Rule 18 of the Gen. Order of Nov. 1862.

The following regulation as to remuneration has been made, and is acted on:

REGULATION

AS TO THE MODE OF

REMUNERATING OFFICIAL LIQUIDATORS

Adopted by the Master of the Rolls and the Vice-Chancellors, and sanctioned and approved by the Lord Chancellor.

EVERY application by an official liquidator for remuneration must be supported by an affidavit showing the number of hours devoted by him and his clerks respectively to the business of the liquidation.

remuneration.

Form 453.

In fixing the amount of the remuneration, the judge will, subject as hereinafter mentioned, be guided by the following scale :—

LIQUIDATORS.

Group A.

Per day of eight hours.

CLASS 1. Where the assets divisible among the unsecured credi

If in the special circumstances of any liquidation it shall at any time, or from time to time, appear to the judge that it is proper to place it on a higher or lower class, he will so place it accordingly.

If it shall appear to the judge that in the special circumstances of any liquidation it is proper to add to or deduct from the amount of remuneration provided by the scale, he will make such addition or deduction accordingly.

If during the progress of a liquidation it shall appear to the judge expedient so to do, he will sanction payments to the liquidator on account of his remuneration.

For this purpose the judge will estimate the amount of such remuneration as well as circumstances will admit, and will pay to the liquidator either the whole of such estimated remuneration or such part thereof as to the judge shall seem reasonable.

This regulation is given in L. R. 3 Ch. lxiv.

Priority of Remuneration.

An official liquidator should bear in mind that he is not entitled to receive anything out of the assets of the company by way of remuneration until all the costs of the winding up (including the costs of any provisional liquidator and the bill of costs of the solicitor employed by the official liquidator) have been paid in full. In re Massey, 9 Eq. 367; Dronfield Co., 23 C. Div. 511. See, however, Re Dominion of Canada Co., 32 W. R. 425; W. N. 1884, 38. But this does not prevent payments being made to him on account of remuneration where the assets will clearly or probably be sufficient to cover the above costs.

Moreover, where the assets are encumbered, e.g., by mortgages or debentures, the remuneration of the liquidator ranks after the rights of the incumbrancers. In re Oriental Hotels Co., 12 Eq. 126; In re Regent's Canal Iron Works Co., 3 C. Div. 411. And see Davy v. Price, W. N. 1883, 226. But the remuneration of the liquidator ranks before the claims of unsecured creditors.

In passing his accounts, a liquidator is very commonly allowed a sum on account of remuneration. And in many cases he applies for payment as above, Form 453.

Very commonly no order is drawn up on such a summons, but the chief clerk indorses a note of liberty given on the summons, and the liquidator is allowed

the amount upon passing his next account. See Form 458.

Sometimes the order is drawn up. Form 453.

An application for remuneration should be supported by an affidavit showing the time occupied, and if the liquidator contends that he ought to receive higher remuneration than the regulation prescribes the special circumstances ought to be stated.

As to liquidator's costs, see infra, Form 653.

Formal parts: see supra, Form 381.

1. By an order in these matters of His Lordship Mr. Justice
day of, I was appointed off. liq. of the above-

made the

named co.

2. To the best of my knowledge, information, and belief, the assets of the sd co divisible among the unsecured creditors thereof will amount to a sum exceeding 20007., but not exceeding 50007.

3. That since the

of

up to and including the

of

the time occupied by myself and my clerks in the liquidon of the sd co was as follows, namely:

Form 454.

By myself, 448 hours; by first-class clerks, 787 hours; by second-
class clerks, 200 hours; and by third-class clerks, 125 hours.

4. The time so occupied was properly, necessarily, and exclusively occupied by myself and my sd clerks respively in the winding-up of the sd co.

5. According to the regulation and scale of charges of this Honourable Ct as to the remuneration to be allowed to off. liqs. the remuneration to be pd or allowed to me for the time occupied by myself personally as afsd, namely 448 hours at 37. per day of 8 hours, amounts to the sum of 1687.; for that occupied by my first-class clerks, namely 787 hours at 28. per hour, amounts to the sum of 787. 148.; for that occupied by my second-class clerks as afsd, namely 200 hours at 1s. 6d. per hour, amounts to the sum of 157.; and, that occupied by my third-class clerks as afsd, namely 125 hours at 18. per hour, amounts to 67. 58.

6. I have calculated my remuneration as afsd upon the footing that the liquidon of the above-named co falls within Class 2 of Group A. of the scale contd in the regulation afsd.

This affidavit is for use in a case where the winding up has not proceeded far, and accordingly the deponent is unable to speak positively as to the assets divisible. But in some cases, e.g., where dividends have actually been paid, the position of the company is clearer and the affidavit is varied accordingly. When in the course of the winding up the liquidator finds that he has been remunerated on a lower scale than that given in the regulation, he will apply for further remuneration showing the facts and the amounts he has received on account.

Some provision as to the remuneration of the official liquidator is not uncommonly made in orders for dissolution, see Forms infra.

A provisional liquidator is remunerated in the same way as other liquidators, unless the order appointing him otherwise provides, e.g., he is sometimes appointed" without salary" or at "--l. per week."

Affidavit of official liquidator as to remuneration.

Affidavit by

make oath and say as follows:

:

1. It has been and is the rule and practice in the office of the sd off. dator's clerk. liq. for all persons engaged upon the affairs of the sd co (including the

official liqui

Form 456.

Affidavit by official liquidator in support.

Form 457.

sd off. liq. himself) to enter into diaries the parlars of all work done by them in respect of the co, and the time occupied in doing the work, and for such entries to be made on the day the work is done or on the day following, and the paper writing now produced and shown to me marked contains to the best of my belief, a true statemt of the time devoted by the sd off. liq. and his clerks to the affairs of the sd co, between the 1st day of November, 1882, and the 13th day of April, 1883; in such statemt the days on which work was done in respect of the co, are set forth in the 1st column, and (opposite to the date) the parlars of the time occupied in doing the work are set forth in the remaining columns. As to the time of the off. liq. in the 2nd column, as to the time of the 1st class clerks in the 3rd column, as to the time of the 2nd class clerks in the 4th column, as to the time of the 3rd class clerks in the 5th column. The sd statemt is divided into two pts, pt one comprised time employed in attending in ct or at the judge's chambers, pt two comprises all other time, but does not comprise any time in attending in ct or at the judge's chambers.

2. I say that the sd statemt corresponds in all its parlars with the entries made by the sd off. liq. and his clerks in their diaries, according to the rule and practice hinbefore mentd, as I know from having compared the statemt with the sd diaries.

I have read the afft of A., sworn the 4th day of June, 1883, and I say that the statemts contd in such afft as to the rule and practice in my office are true.

The paper writing marked L 1 now produced and shown to me (being the exhibit referred to in the sd afft), contains a true and correct statemt of the time devoted by me and my clerks to the affairs of the abovenamed co, between the 1st day of November, 1882, and the 30th day of April, 1883. The whole of such time has been necessarily and diligently employed solely upon the affairs of the co, and no pt of the same has been or will be charged to any other co or person.

The whole of the time appearing by the sd statemt to have been. devoted by me personally to the affairs of the co, was employed on matters proper to engage my attention, and which could not properly be entrusted to clerks, and the whole of the time appearing to have been devoted by each class of clerks, was employed upon matters proper to receive the attention of such clerks, and which ought not to have been entrusted to clerks of any other class.

Upon the applicon of M., the off. liq., &c., Let the remuneration of to be assessed the sd M. as prov. off. liq. and off. liq. of co be assessed and [usual

Remuneration

and paid.

order for taration of off. liqs. costs, &c.] And let the sd. M. be at libty Form 457. to deduct such remuneration and pay the sd costs when so taxed, and be allowed such paymts respively on his accounts.. Gwendraeth Colliery, Fry, J., 7 Ap. 1879. A. 823.

Upon the applicon of the off. liqs., &c., and upon reading (inter alia Form 458. the order to carry on the works), Let the applicant J. until further order Allowance on be allowed 807. per calendar month, on account of his remuneration as account of one of the off. liqs. of co, the same to be accounted for by him when such remuneration shall be ultimately fixed. Thos. W. Booker & Co., Fry, J., 26 Feb., 1879. B. 361.

remuneration.

Upon the applicon of J. the off. liq., &c., Let out of the sum of 4127. Form 459. standing in the books of the Bank of England to the credit of the off. Order for payliq. of the sd co the sum of 831., being the ascertained amount of the ment of official liquidator's sd off. liq.'s remuneration, be pd to the sd J. as such off. liq. And remuneration. [tax liq.'s costs]. The Cardiff & Merthyr, &c., Co., Hall, V.-C., 10 Mar. 1877. A. 621.

Upon the applicon of D. and S., creditors of the above-named co, to Form 460. remove T. from the office of off. liq. of sd co and to appoint H. in his Removal of place and stead, &c., Let T., the off. liq. of sd co, be removed from his official liquioffice as such off. liq. as afsd, and let in his place and stead the sd H. be appointed off. liq. of the sd co. And [usual directions]. And [costs]. Moorwood Moor, &c., Co., Malins, V.-C., 22 Nov., 1876. B. 1940.

Under section 93 of the Act of 1862, an official liquidator may resign or be removed by the Court on due cause shown. As to the meaning of the words in italics, see In re Sir John Moore Gold Mining Co., 12 C. D. 325; 28 W. R. 203; Ex parte Sheard, 16 C. D. 107; Buckley, 239, 294; and Oxford Building Society, 49 L. T. 495. See also Rule 16.

The application for removal is usually by summons, but occasionally it is made by motion or petition.

Sometimes a new liquidator is appointed by the order removing the old one, and sometimes by a subsequent order.

In the case of the Association of Land Financiers, 10 C. D. 269, the official liquidator was removed on motion made on behalf of large majority of unsecured creditors, and two creditors who were willing to act gratis were appointed in his place. For the order, see Reg. Lib. 5 Dec. 1878. A. 2177.

A contributory who has not paid a call cannot apply for removal of liquidator. Norwich Provident, W. N. 1879, 216.

dator.

Order on

Upon the applicon of, &c., and upon hearing the solors for the ap- Form 461. plicant and F. the off. liq. of sd co, &c., and the sd F. by his solor desiring to retire from the office of off. liq. of the sd co: the judge doth resignation. hby appoint M., of off. liq. of the sd co in the place of the sd F. And [accounts 1st June in each year, money to be pd into Bank]: And let the sd F. on or before the 16 Dec., 1878, leave his final account as such off. liq. at the chambers of the judge and pass the same and within 14 days from the date of the chief clerk's certificate pay the balance (if any) which shall be certified to be due from him into the Bank