Companies Act 2014 section 647

Liquidator's entitlement to receive payment where entitlement to remuneration exists

Section 647 sets out the approval process a liquidator must follow before actually receiving payment of remuneration during a winding up, even where an underlying entitlement to remuneration has already been established.

• A liquidator whose entitlement to remuneration has been established under section 646 must still obtain specific approval before receiving any payment, whether in full, in part, or on account.
• The required approval comes from the committee of inspection (if one exists), or by resolution of creditors (in a court winding up or creditors' voluntary winding up), or by resolution of members in general meeting (in a members' voluntary winding up), or failing any of these, by the court.
• Before seeking approval, the liquidator must provide prescribed particulars of the amount claimed to whichever body is responsible for granting that approval.
• If creditors or members fail to pass the necessary resolution when asked, the liquidator may apply to the court to have the amount fixed, and the prescribed particulars must accompany that court application.