An Empirical Study of Australian Judicial Decisions Relating to Insolvency Practitioner Remuneration

Insolvency Law Journal, Vol. 24, No. 3, pp. 165-191, 2016

27 Pages Posted: 21 Nov 2016

See all articles by Stacey Steele

Stacey Steele

University of Melbourne - Asian Law Centre

Vivien Chen

Monash University - Department of Business Law & Taxation

Ian Ramsay

Melbourne Law School - University of Melbourne

Date Written: November 20, 2016

Abstract

Insolvency practitioner remuneration is controversial as recent debates and reforms in Australia evidence. The role of courts in reviewing and setting remuneration has also been called into question. These debates have lacked, however, empirical evidence about remuneration and the role of courts. This article analyses 162 decisions from Australian courts to find out what roles courts are playing in reviewing and setting corporate insolvency practitioner remuneration. The findings suggest that there are still important roles for courts, particularly in the context of allegations of misconduct. The study also suggests, however, that there is merit in continuing to explore low cost, out-of-court mechanisms for reviewing and setting remuneration. The study found that many claims for approval of remuneration are coupled with requests from practitioners seeking other orders, are unopposed and typically approved as claimed. Over one third of the cases involved claims for amounts of less than $50,000. Out-of-court mechanisms focused solely on remuneration may also provide more certainty and consistency across remuneration decisions which will benefit all stakeholders.

Keywords: insolvency, liquidators, insolvency practitioner remuneration

Suggested Citation

Steele, Stacey and Chen, Vivien and Ramsay, Ian, An Empirical Study of Australian Judicial Decisions Relating to Insolvency Practitioner Remuneration (November 20, 2016). Insolvency Law Journal, Vol. 24, No. 3, pp. 165-191, 2016. Available at SSRN: https://ssrn.com/abstract=2873221

Stacey Steele

University of Melbourne - Asian Law Centre ( email )

Melbourne
Australia

Vivien Chen

Monash University - Department of Business Law & Taxation ( email )

Caulfield Campus
Sir John Monash Drive
Caulfield East, Victoria 3084
Australia

Ian Ramsay (Contact Author)

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 5332 (Phone)

HOME PAGE: http://law.unimelb.edu.au/about/staff/ian-ramsay

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