The administrators have not yet charged their fees to this case and the legislation does not require any account to be prepared until after they have been in office for six months. However details of the administrators’ charge-out rates are likely to be included in the report to creditors which will be issued in January.
Neither my right hon. Friend the Secretary of State nor I are in a position to estimate the amount of fees that may become payable in this case.
In most cases, the general body of creditors determine whether the remuneration should be based on a percentage of the value of assets dealt with by the administrators or their time costs. It is possible for the court to reduce the amount of remuneration where creditors claim that it is excessive.
With regard to cost of telephone inquiries, the administrators had to set up a specific call centre to deal with the large volume of inquiries about this case. I am advised that the cost of the calls is purely to cover the costs of the call centre and will not result in any “profit” accruing to the administrators.
[holding answer 4 December 2006]: The investigation into Farepak is being carried out under section 447 of the Companies Act 1985 by officers of the Department's Companies Investigations Branch. Unlike the appointment of inspectors, it is not the practice to disclose the names of investigators carrying out these enquiries.
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