9. Creditors' or members' claim that remuneration is, or other expenses are, excessive

Past version: effective from 14/06/2015 - 13/06/2015
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(1) The following may apply to the Court for one or more of the orders in sub-paragraph (8) —
(a) a secured creditor;
(b) an unsecured creditor with either —
(i) the concurrence of at least ten (10)% in value of the unsecured creditors (including that creditor); or
(ii) the permission of the Court; or
(c) in a members' voluntary winding-up —
(i) members of the Company with at least ten (10)% of the total voting rights of all the members having the right to vote at general meetings of the Company; or
(ii) a member of the Company with the permission of the Court.
(2) An application may be made on the grounds that —
(a) the remuneration charged by the Office-holder;
(b) the basis fixed for the Office-holder's remuneration under paragraphs 2 (Remuneration: principles) and 3 (Remuneration: procedure for initial determination) of this Schedule; or
(c) expenses incurred by the Office-holder,
is or are, in all the circumstances, excessive or, in the case of an application under sub-paragraph (2)(b), inappropriate.
(3) The application by a creditor or member must be made no later than eight weeks (or, in a case falling within Section 240 (Removal or resignation of liquidator), four weeks) after receipt by the applicant of the progress report, or the final account or report under Section 182 (Final meeting prior to dissolution) or Section 213 (Duty to summon final meeting) (as applicable) which first reports the charging of the remuneration or the incurring of the expenses in question ("the relevant report").
(4) If the Court thinks that no sufficient cause is shown for a reduction, it must deliver to the applicant notice to that effect; and —
(a) if, within five business days of delivery of that notice, the applicant applies to the Court to fix a venue for a hearing, without notice to any other party, as to whether sufficient cause is shown, the Court will do so; but
(b) if the applicant does not deliver notice in accordance with sub-paragraph (4)(a), the Court may dismiss the application without a hearing.
(5) The Court must fix a venue for the application to be heard, and deliver notice to the applicant if the application is not dismissed —
(a) after a hearing under sub-paragraph (4)(a); or
(b) without a hearing in accordance with sub-paragraph (4)(b).
(6) The venue must be fixed for not less than 28 days after delivery to the applicant of the notice under sub-paragraph (4).
(7) The applicant must, at least 14 days before the hearing, deliver to the Office-holder a notice stating the venue and accompanied by a copy of the application and of any evidence which the applicant intends to provide in support of it.
(8) If the Court considers the application to be well-founded, it must make one or more of the following orders —
(a) an order reducing the amount of remuneration which the Office-holder is entitled to charge;
(b) an order reducing any fixed amount;
(c) an order changing the basis of remuneration;
(d) an order that some or all of the remuneration or expenses in question be treated as not being expenses of the administration, expenses for the purposes of the Deed of Company Arrangement or winding-up expenses; and
(e) an order that the administrator or liquidator or the administrator's or liquidator's personal representative pay to the Company the amount of the excess of remuneration or expenses or such part of the excess as the Court may specify,
and may make any other order that it thinks just; but an order under sub-paragraph (8)(b) or (c) may be made only in respect of periods after the period covered by the relevant report.
(9) Unless the Court orders otherwise under sub-paragraph (10), the costs of the application must be paid by the applicant, and are not payable as an expense of the administration or the Deed of Company Arrangement or as winding-up expenses.
(10) The Court may order that the costs may be payable by the applicant, by the respondent or as an expense.