Justifying Liquidator Fees: UK Privy Council Draws From Singapore Framework

Liquidator remuneration in insolvency proceedings often raises difficult questions; especially in large corporate collapses where the work is extensive and the stakes are high. Courts must balance fair compensation with creditor protection, but approaches to fee assessment have varied across jurisdictions, leading to uncertainty and dispute.

Against this backdrop, the UK's Privy Council has delivered a landmark judgment clarifying the principles for assessing the fees of liquidators in complex, large-scale insolvencies. The decision in Attorney General of Trinidad and Tobago v CL Financial Ltd (in Liquidation) [2025] UKPC 41 provides crucial guidance for insolvency practitioners, creditors, and company directors, emphasising the need for detailed justification of time-based remuneration while stopping short of requiring a burdensome line by line court analysis.