WINDING UP

237
below two in number, it cannot function. Rule 159 of the
Winding-up Rules of 1929, forbids a purchase of any of the
company’s assets by or on behalf of a member of the
committee without leave of the Court, and Rule 161
forbids a member of the committee directly or indirectly
to make any profit out of his office, except under the Court’s
sanction.

If several liquidators are appointed, the powers conferred
on a liquidator by s. 248 may be exercised by such one or more
of them as may be determined at the time of their appointment
or in default of such determination by any number not less
than two [s. 248 (3)1.

The remuneration of a liquidator in a members’ voluntary
winding up may be fixed by the company in general meeting
either when the liquidator is appointed or subsequently
(s. 232 (1)]; in a creditors’ voluntary winding up the committee
of inspection, or if there be none, the creditors may fix the
remuneration [s. 241 (1)]. In either case the Court can be
asked to fix the remuneration under the joint effect of ss. 252
and 188 (2), e.g. where the creditors think the committee have
allowed too much. The remuneration may be a lump sum,
or a percentage on the assets, or may be at the rate of so
much per day or per hour spent exclusively on the liquidation;
or other methods of remuneration may be adopted. It is
generally inadvisable to fix the liquidator’s remuneration at
the time of his appointment, as the amount of work involved
cannot be known: but this objection does not apply so
strongly in the case of a members’ voluntary liquidation for
the purpose of reconstruction where the work involved can
be fairly estimated and the liquidator will probably be an
officer of the old company and become an officer of the new
company and will often be remunerated by the payment of
a moderate lump sum. If application is made to the Court,
it will in general adopt the scale applicable to trustees in
bankruptcy [Carton (1923), 39 T.L.R. 194]. In some cases
under the Act of 1908, the Court has increased the remuneration
allowed by the company. A course sometimes adopted is
for the liquidator to take what he considers reasonable
remuneration, and then, when his final accounts are passed at
the final meeting (see below), that sum, if approved, is by the
vote of the company appropriated to him. Rule 158 forbids
a liquidator to accept any gift, remuneration, consideration or
benefit from any solicitor, auctioneer or any other person
connected with the company or employed in connection with
the winding up, beyond the remuneration to which he is
entitled, or to make any arrangement for giving up anv of his

Joint
Liquidators.

Remunera-
tion of a
Liquidator.