Patrick O'Donovan (Limerick County, Fine Gael)
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1192. To ask the Minister for Jobs, Enterprise and Innovation if her Department will consider reviewing the fees being awarded to liquidators as part of liquidation processes; if she is satisfied that the scale of the fees being paid fairly reflects the role being undertaken; if her Department has any evidence of excessive amounts being paid to liquidators as part of the process; and if she will make a statement on the matter. [10665/16]

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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The fees of liquidators are a matter for any company seeking to wind up its operations. I have no direct role in the setting of liquidators fees. However, the procedure for fixing a liquidator’s remuneration is on a statutory footing (section 646 of the Companies Act, 2014). Accordingly, the terms upon which a liquidator has an entitlement to remuneration are set by the creditors or the committee of inspection (for court ordered windings-up or creditors’ voluntary windings-up) or by members (for members voluntary windings-up). There is also a residual power for the court to set remuneration, or appoint a person to fix the amount of remuneration if it is not so set. Liquidators must seek to have their entitlement to remuneration set as soon as possible after being appointed. Provision has also been made regarding the terms upon which a liquidator’s entitlement to remuneration may be varied and ensures that no variation may, without the consent of the liquidator, reduce the entitlement of the liquidator to remuneration for work that may already have been performed.

The role of a liquidator is one requiring skill and knowledge of company law. The purpose of a liquidator is to wind up a company in an efficient fashion and to ensure that the rights of shareholders and creditors (including employees) are met. Furthermore, the functions and powers of a liquidator are potentially of a great importance in the detection of breaches of company law, the prosecution of such breaches and enforcement of company law generally. The significance of the role of liquidators is reflected in the new requirement that a person standing for appointment as a liquidator must have specific qualifications and indemnity insurance.