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Disproportionately proportionate – the Sakr remuneration decision overturned

By Georgina King a Senior Associate of Matthews Folbigg, in our Insolvency, Restructuring and Debt Recovery Group

A 5 member Full Court of the Supreme Court of NSW Court of Appeal has unanimously overturned the decision of Brereton, J in the much anticipated Sakr Nominees Pty Ltd (In Liquidation) insolvency practitioner remuneration appeal.

Justice Brereton had limited the remuneration of the liquidator, Clifford Sanderson, for work he had undertaken in the final stages of a liquidation, to $20,000 (including GST). This was only a portion of the total remuneration sought to be approved ($63,577.80). In reaching this decision, His Honour relied heavily on the fact that remuneration may be by way of commission (a proportion of assets realised or distributed) rather than time based and a view that in smaller liquidations “questions of proportionality, value and risk loom large, and liquidators cannot expect to be rewarded for their time at the same hourly rate as would be justifiable when more property is available.” [...]  READ MORE →