In brief - Insolvency practitioners need to prove that claims
for remuneration are proportionate and reasonable
The Courts are increasingly focusing on considerations of
proportionality when reviewing claims for remuneration and
expenses.
In this article I will discuss how the concept of
proportionality has been applied by Courts across Australia,
including the recent appeal decision of the Federal Court of
Australia which extensively considered and explained the correct
application of the concept.
Stockford case highlights problems with time-based
administrator's fees
Finkelstein J highlighted issues surrounding remuneration in his
2004 Judgment
Korda, In the Matter of Stockford Limited (Subject to Deed of
Company Arrangement) [2004] FCA 1682. He discussed
"some of the vexed issues that concern the fees of insolvency
practitioners, particularly registered liquidators, receivers and
administrators. There is wide-spread belief, not confined to
Australia,
