Principles Governing the Fixing of Insolvency Practitioners’ Remuneration

NUS Law Working Paper No. 2020/023

EW Barker Centre for Law & Business Working Paper 20/09

23 Pages Posted: 17 Aug 2020

See all articles by Meng Seng Wee

Meng Seng Wee

National University of Singapore (NUS) - Faculty of Law; National University of Singapore (NUS) - Centre for Law & Business

Yan Yu Kiu

National University of Singapore - Faculty of Law

Date Written: August 14, 2020

Abstract

Overcharging by insolvency practitioners is a problem which has invited legislative and judicial intervention in several commonwealth jurisdictions, and continues to be a concern in many of them. Such intervention is justified on the basis of market failure, as not all beneficiaries of the relevant insolvency procedure are able to effectively control and monitor the practitioner’s charges. However, the underlying principles of the regulations in this area are not always fully thought-out, and their application can often be challenging. The goal of this paper is to elucidate the principles that ought to apply in this area, evaluating the laws of 3 commonwealth jurisdictions – England, Singapore and Hong Kong – in the process. In particular, this paper will focus on who ought to be empowered to set remuneration, the rules on disclosure that combat market failure through the provision of information, and the appropriate approach towards calculating the quantum of remuneration. Hopefully, this paper will reveal the areas where further reform is desirable, and also render the underlying principles more logical.

Keywords: Insolvency practitioners; liquidators; IP remuneration; liquidators’ remuneration; market failure

Suggested Citation

Wee, Meng Seng and Kiu, Yan Yu, Principles Governing the Fixing of Insolvency Practitioners’ Remuneration (August 14, 2020). NUS Law Working Paper No. 2020/023, EW Barker Centre for Law & Business Working Paper 20/09, Available at SSRN: https://ssrn.com/abstract=3673656 or http://dx.doi.org/10.2139/ssrn.3673656

Meng Seng Wee (Contact Author)

National University of Singapore (NUS) - Faculty of Law ( email )

469G Bukit Timah Road
Eu Tong Sen Building
Singapore, 259776
Singapore

National University of Singapore (NUS) - Centre for Law & Business ( email )

Eu Tong Sen Building
469G Bukit Timah Road
259776
Singapore

Yan Yu Kiu

National University of Singapore - Faculty of Law ( email )

Eu Tong Sen Building
469G Bukit Timah Road
259776
Singapore

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