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ARTICLE · 06 APRIL 2022

Remuneration cut due to unreasonable prolongation of administration

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Discussion about recent case where a liquidator sought approval for his remuneration under Sch 2 of the Corporations Act.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Cameron Cheetham
Cameron Cheetham
Mark Wilks
Mark Wilks
Craig Ensor
Craig Ensor
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This week's TGIF considers In the matter of Guided Knowledge Group Pty Ltd  [2022] NSWSC 255 in which a liquidator sought approval for his remuneration under Schedule 2 of the Corporations Act 2001 (Cth).

Key Takeaways

  • Under section 60-12 of the Insolvency Practice Schedule (Corporations), a court considers a number of factors to determine whether the amount of remuneration sought is reasonable.

  • The onus is on the liquidator to establish the reasonableness of remuneration claimed.

  • If a court believes the liquidator unreasonably delayed finalising the winding up, remuneration for ongoing administrative costs are unlikely to be recoverable.  

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