2
Registrar General has estimated that 44% of the cases
processed by the Official Receiver involve total
realisable assets of less than $10,000. Each liquidation
of this sort costs the Official Receiver alone an
estimated $16,000 or more, and only a small proportion of
the cost is recovered in fees and charges. The result of
introducing a minimum deposit and fee of $10,000 will be
to discourage creditors from petitioning for winding up
where the assets are not likely to yield a worth while
dividend. This will lead to a considerable saving in
time, effort and money.
5.
In respect of petitioners who are in receipt of
legal aid, the minimum deposit and fee of $10,000 will be
paid by the Director of Legal Aid in accordance with
existing practice.
6.
Other amendments increase the charges payable
under the Fees and Percentages Order and replace the
percentage scale with a flat rate of 10% chargeable on the
total assets realised by the Official Receiver. There is
power under section 9 of the Order for the Official
Receiver to apply to the court to reduce the fee if it
would produce an amount which, particularly in the
relatively straightforward cases and where the assets are
considerable, would not be justified by the effort
involved.
7.
Sir, I beg to move.