The external administrator of a company is entitled to receive remuneration for necessary work properly performed by the external administrator in relation to the external administration.
The amount of remuneration will usually be set under a remuneration determination. Remuneration determinations are made by:
- (a) in a members voluntary winding up - the members; and
- (b) in most other cases - the creditors or the committee of inspection (if there is one).
However, if there is no remuneration determination, the external administrator will be entitled to receive a reasonable amount for the work. The maximum amount that the external administrator may receive in this way is $5,000 (exclusive of GST and indexed).
The remuneration of provisional liquidators is, in most cases, determined by the Court.
The Court may review the remuneration of the external administrator of a company and may also make orders under Division 90 about remuneration (including ordering repayment of remuneration).
The external administrator of a company must not:
- (a) employ a related entity, unless certain requirements are met;
- (b) purchase any assets of the company; or
- (c) get any other benefits or profits from the administration.