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Form 347. the company the sum of -7. on account of his remuneration as such official liquidator.

off. liq. for liberty to retain money on account of remuneration.

Section 93 of the Act of 1862 provides that there shall be paid to the official liquidator such salary or remuneration, by way of percentage or otherwise, as the court may direct; and if more liquidators than one are appointed, such 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.

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

Group A.

LIQUIDATORS.

Per day of eight hours.

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CLASS 1. Where the assets divisible among the unsecured creditors

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Group B.
CLASS 4.

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5,000

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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. 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. But the remuneration of the liquidator ranks before the claims of unsecured creditors.

Payments on Account.

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 347. 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. Sometimes the order is drawn up. See Form 350a.

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.

Form 347.

Formal parts: see supra, Form 315.

1. By an order in these matters of His Lordship the Vice-Chancellor, Form 348. Sir, made the day of, I was appointed official liquidator of the above-named company.

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Affidavit of off liq. as to re

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

of up to and including the

of

3. That since the
the time occupied by myself and my clerks in the liquidation of the
said company was as follows, namely:

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 said clerks respectively in the winding-up of the said company.

5. According to the regulation and scale of charges of this Honble. Court as to the remuneration to be allowed to off. liqs. the remuneration to be paid or allowed to me for the time occupied by myself personally as aforesaid, 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 2s. per hour, amounts to the sum of 787. 14s. ; for that occupied by my second-class clerks as aforesaid, namely 200 hours at 1s. 6d. per hour, amounts to the sum of 157. ; and, that occupied by my third-class clerks as aforesaid, namely 125 hours at 1s. per hour, amounts to 67. 58. 6. I have calculated my remuneration as aforesaid upon the footing

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Form 348. that the liquidation of the above-named company falls within Class 2 of Group A. of the scale contained in the regulation aforesaid.

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 " £- per week."

Form 349.

Remuneration

to be assessed and paid.

Upon the application of M., the off. liq., &c., Let the remuneration of the said M. as prov. off. liq. and off. liq. of co. be assessed and [usual order for taxation of off. liqs. costs, &c.] And let the said M. be at liberty to deduct such remuneration and pay the said costs when so taxed, and be allowed such payments respectively on his accounts. Gwendraeth Colliery, Fry, J., 7 Ap. 1879. A. 823.

Form 350.

Allowance on

Upon the application of the off. liqs., &c., and upon reading (inter alia the order to carry on the works), Let the applicant J. until further account of re- order be allowed 801. per calendar month, on account of his remuneration as 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.

muneration.

Form 350a.

Order for pay. ment of off. liq.'s remuncration.

Upon the application of J. the off. liq., &c., Let out of the sum of 4127. standing in the books of the Bank of Eng. to the credit of the off. liq. of the said co. the sum of 837., being the ascertained amount of the said off. liq.'s remuneration, be paid to the said J. as such off. liq. And [tax liquidator's costs]. The Cardiff & Merthyr, &c., Co., Hall, V.-C., 10 Mar. 1877. A. 621.

Form 351.

Removal of official liquidator.

Removal and Resignation of Official Liquidators.

Upon the application of D. and S., creditors of the above-named co., to remove T. from the office of off. liq. of said co. and to appoint H. in his place and stead, &c., Let T., the off. liq. of said co., be removed from his office as such off. liq. as aforesaid, and let in his place

and stead the said H. be appointed off. liq. of the said co. And [usual Form 351. directions]. And [costs]. Moorwood Moor, &c., Co., Malins, V.-C., 22 Nov. 1876.

B. 1940.

Under s. 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. Div. 325; 28 W. R. 203, and Buckley, 213, 264. 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.

Upon the application of, &c., and upon hearing the solicitors for the Form 352 applicant and F. the off. liq. of said co., &c., and the said F. by his Order on solicitor desiring to retire from the office of off. liq. of the said co. : the Resignation. judge doth hereby appoint M., of off. liq. of the said co. in the place of the said F. And [accounts 1st June in each year, money to be paid into Bank]: And let the said F. on or before the 16 Dec. 1878, leave his final account as such official liquidator 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 of Eng. to the account of the off. liq. of said co. And let upon such payment by the said F., or upon its being certified that there is no balance due from him, the said recognisances dated, &c. be vacated. Alexandra Palace Co. Ld., Malins, V.-C., 4 Dec. 1878. 2151 A.

For order on application of K. the liq. of C. Co., creditors of B. Co., discharging M. from being off. liq. of B. Co., and appointing K. in his place; M. on or before 22 June, to leave in chambers his account as off. liq., and to pay the certified balance to K., costs of applicants of application to be ascertained in Chambers, and paid by said M. to them, but M. to be at liberty to set-off the amount of such costs against the amount (if any) due to him for remuneration as such off. liq. as aforesaid, and upon such payments being made recognisance and bond to be vacated ; see Brykinalt Collieries, M.R., 26 May, 1879. A. 1250.

For order directing liquidator to pay out of the company's assets the costs of a person on whose application a former liquidator was removed, but without prejudice to company's right to recover the amount from the removed liquidator; see Commercial Bank Limited, Hall, V.-C., 6 May, 1878. A. 2152.

Enforcing Delivery of Books and other Property.

Formal parts: see supra, Form 313.

Form 353.

On the part of the off. liq. of the above-named co., that Messrs. the former solicitors of the said company, may be ordered upon oath, if Summons to

compel delivery

Form 353. necessary, to deliver up to the applicant all deeds, books, papers, and writings in their possession, custody, or power, belonging to the abovenamed co. without prejudice to any lien which they may have thereon.

of company's books and papers.

See s. 100 of the Act. Orders for the delivery to the official liquidator of property of the company are frequently made under that section.

The application is usually made by summons served on the parties against whom the order is sought. See Buckley, 225.

For order giving liberty to serve out of the jurisdiction summons under this section, sce International Patent Pulp Co., 18 June, 1877, 1142. As to enforcing order by attachment, see In re Anglo-French Co-op. Society, 14 C. D. 533.

Form 354.

solicitors.

Upon the application of the off. liq. of co., and upon hearing the Order against solicitors for the applicant and for Messrs. C. & S. solicitors of, &c. the company's appearing in person, and upon reading 2 orders dated, &c., Let the said Messrs. C. & S. within fourteen days after service of this order deliver into the hands of B., the said off. liq., at his office, No., all deeds, books, papers, letters, and other documents now being in the possession or power of the said Messrs C. & S., and to which the co. is primâ facie entitled, And order that such delivery shall be without prejudice to the lien of the said Messrs. C. & S. on the said deeds, books, papers, letters, and other documents, which lien ought to be paid out of the first monies coming to the hands of the said off. liq. after providing for the costs and expenses of the winding up of the said co., but this order is not to prejudice any security or charge that may be held by the said Messrs. C. & S. as against the said co. Langham Skating Rink Co. M. R., 13 Dec. 1877. B. 2063.

Form 355.

Another.

Upon the application of the off. liq. of the above-named co., and upon hearing the solicitors for the applicants and for P. of, in person, and the solicitors for C. and B., and upon reading, &c., Let the said P., C. and B. respectively, within seven days after service of this order upon them respectively, deliver into the hands of L., the off. liq. of the said co., all books and papers in the hands of each of them, and to which the co. is primâ facie entitled, and order that such delivery be without prejudice to the lien (if any) which the said P., C. and B., or any of them may have upon the said books and papers in their hands respectively. Regent's United Stores, Malins, V.-C., 2 Aug. 1878. B. 1601. See also In re Horbury Bridge Co., 11 C. Div. 109.

Form 356.

Order giving

Carrying on Business.

Upon the application of the off. liq., &c., let the said off. liq. be at liberty to carry on the business of the said co., and continue the

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