NOTES ON CONTROLLING TRUSTEE'S REMUNERATION

Creditors may be asked at a Meeting (if convened) to consider an Ordinary Resolution approving Trustee's remuneration in accordance with Section 162(1) of the Bankruptcy Act, 1966. Essentially these Resolutions will be as follows:-

“That the Trustee’s remuneration to be drawn from time to time in respect to himself and his employees be approved to an interim amount of $            (plus GST) at the Chamberlains SBR., current scale of rates (or as subsequently varied),  plus disbursements”.

Creditors should also be aware that remuneration may alternatively be fixed by a Committee of Inspection (if one is appointed), and if not fixed by Ordinary Resolution as above or by a Committee of Inspection (otherwise as prescribed by the regulations).

The Insolvency Practitioners Association of Australia (incorporating Bankruptcy Trustees' and Liquidators' Association of Australia) is a national body of insolvency practitioners to, inter alia, monitor the ethical standards, performance and continuing professional development of its members who practise in the area of insolvency. The Association issued its first recommended scale of fees effective from 1st July, 1982, and this has been revised each year since then. As at 7/99 the IPAA ceased to issue this scale and recommend practitioners follow a statement of best practise in setting their fees. Chamberlians SBR. as a consequence have relied on the 7/99 fee structure as a guide and today charge at rates reasonably consistant (see annexed). Insolvency work tends to lack the regularity of most general practice and demands the availability of staff with particular skills, often with little or no prior notice. This generally results in the need to have sufficient staff to meet unexpected assignments and, in consequence, individual charge out rates for this type of work could tend to be higher than they might otherwise be. It is also recognised that, particularly in Official Liquidation’s and Bankruptcies, the appointed Administrator will have no prior knowledge of the financial status of the Company/Individual and will be appointed to carry out statutory functions without being remunerated nor even recover out-of-pocket expenses.

It is also appropriate for Creditors to be aware that Regulation 8.09(1) of the Bankruptcy Act, 1966 provides:-.

“Where the trustee of the estate of a bankrupt claims remuneration under Section 162 of the Act, the bankrupt or a creditor who is dissatisified with the amount of the claim may, by notice in writing lodged within 28 days of being notified in writing or becoming aware of the amount of the claim, request a taxing officer to tax the claim.”