What are the fees involved?
The professional fees is guided by the Singapore High Court and Section 142 of the Companies (Winding Up) Rule (Revised Edition) 2006 and apply where the estimated fees exceed S$200,000, and are irrespective of whether the subject company is solvent or insolvent. The scheme managers and private appointments are exempted. The guidelines are applicable to court appointed:-
a. provisional liquidation;
c. judicial managers; and
d. receivers and managers.
The court would assess the remuneration based on the following factors:
A. Based on the provisional figure, which is usually based on time-cost, the court will determine the reasonableness of the hourly rates, the industry standards and whether the hours claimed were spent and were spent reasonably;
B. Thereafter, the court will adjust the provisional figures to deduct the quantifiable heads of claims before apply a further percentage reduction to reflect the Court’s assessment of what a fair and just sum should be.
The following charges would be disallowed when assessing the remuneration:-
a. Remuneration for administrative tasks done by fee earners;
b. Work done by the receivers and managers in relation to legal proceedings unless it can be shown that work done was distinct from that undertaken by the lawyers appointed; and
c. Hourly charges for administrative staff.