Companies Act 2014 section 646

Liquidator's remuneration — procedure for fixing liquidator's entitlement thereto

Section 646 sets out the procedure for agreeing, approving or fixing a liquidator's entitlement to remuneration in a winding up.

• A liquidator (other than a provisional liquidator) is entitled to remuneration on terms that may be expressed as a percentage, based on time spent, or by any other method
• The terms must be agreed with the committee of inspection (if one exists), approved by creditors (in court or creditors' voluntary windings up) or by members (in members' voluntary windings up), or failing these, fixed by the court
• The liquidator must seek agreement or approval of remuneration terms as soon as practicable after appointment, and must provide written particulars of the sought terms to the relevant parties beforehand
• Remuneration terms may be varied by subsequent agreement, resolution or court order, but no variation may reduce the liquidator's entitlement for work already performed without the liquidator's consent

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