RECEIVERS’ FEES

Dominion, Volume 30, Issue 175, 21 April 1937, Page 7

RECEIVERS’ FEES

Judgment in English Case A ehiini involving an important question of principle affecting receivers was heard recently in London before Mr. Justice Clatison, states the London correspondent of the New Zealand “Accountants’ Journal.” Sir William Henry Peat, chartered accountant, had been appointed receiver in a debentureholders’ action, and in the course of his receivership he had reorganised a business and sold it as a going concern for £205,500. The certificate of the master had allowed Sir William £lO5O for this and other relative work, and it was now contended that this sum was insufficient and should be increased to £6550. The parlies representing the debenture and prior lien-holders. took the view that what the receiver was asking for was well justified and that the sale was an extraordinarily beneficial one. Counsel said that the master apparently thought that with respect to valuable services rendered by a receiver with regard to sales, any remuneration allowed was purely ex gratia, but it was submitted that where a receiver busied himself about a sale he was entitled as a matter of course to remuneration. In his affidavit Sir William detailed the work he did in reorganising the business, carrying out contracts, and ultimately negotiating the sale. His Lordship, in giving judgment, said Sir William was a man of great experience who had made a very satisfactory sale. He thought that £lO5O wns less than tlie work deserved, and he would vary the master’s certificate by increasing the amount to £2625.