107. Expenses of the administration
Past version: effective from 14/06/2015 - 13/06/2015
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(1) The expenses of the administration are payable in the following order of priority —
(a) expenses properly incurred by the administrator of a Company in performing his functions in the administration of the Company;
(b) the cost of any security provided by the administrator of a Company in accordance with these Regulations;
(c) where an administration order was made, the costs of the applicant and any person appearing on the hearing of the application and where the administrator of a Company was appointed otherwise than by order of the Court, any costs and expenses of the appointor in connection with the making of the appointment and the costs and expenses incurred by any other person in giving notice of intention to appoint an administrator of the Company;
(d) any amount payable to a person employed or authorised, under Chapter 7 (Process of Administration) of this Part 1 (Administration), to assist in the preparation of a Statement of Affairs or statement of concurrence;
(e) any allowance made, by order of the Court, towards costs on an application for release from the obligation to submit a Statement of Affairs or statement of concurrence;
(f) any necessary disbursements by the administrator of a Company in the course of the administration (including any expenses incurred by members of the creditors' committee or their representatives and allowed for by the administrator of the Company under this Section, but not including any payment of taxes in circumstances referred to in subsection (i) below);
(g) the remuneration or emoluments of any person who has been employed by the administrator of a Company to perform any services for the Company, as required or authorised under these Regulations;
(h) the remuneration of the administrator of the Company the basis of which has been fixed under Section 109 (Fixing of an administrator's remuneration) and Schedule 12 (Remuneration) and unpaid pre-administration costs approved under Section 108 (Pre-administration costs); and
(i) the amount of any corporation tax on chargeable gains accruing on the realisation of any asset of the Company (without regard to whether the realisation is effected by the administrator of a Company, a secured creditor, or a receiver or manager appointed to deal with a security).
(2) The priorities laid down by subsection (1) are subject to the power of the Court to make orders under subsection (3) where the property is insufficient to satisfy the liabilities.
(3) The Court may, in the event of the property being insufficient to satisfy the liabilities, make an order as to the payment out of the property of the expenses incurred in the administration in such order of priority as the Court thinks just.
(4) For the purposes of Section 143(3) (Vacation of office: charges and liabilities), the remuneration and expenses of a former administrator of the Company shall comprise all those items set out in subsection (1).