Receivers’ remuneration, fees and disbursements
The receiver’s remuneration, fees and disbursements are set out in the document appointing the receiver and usually it is to be paid by the person appointing the receiver out of the net proceeds of sale of the company’s assets by the receiver.
However, a provision for receiver’s remuneration, fees and disbursements in such a document will not help a receiver whom services are terminated prematurely to claim for fees and disbursements. Therefore, it is important that a receiver obtains an indemnity for fees and disbursements incurred in carrying out his or her duty as a receiver from the person appointing him or her. A receiver whom services are terminated prematurely obtain the indemnity may base his or her claim for fees and disbursements.