70‑45 Reports about remuneration to be g70‑45 Reports about remuneration to be given before remuneration determinations are made

70‑45 Reports about remuneration to be given before remuneration determinations are made

(1) This section is made for the purposes of section 70‑50 of the Insolvency Practice Schedule (Bankruptcy). Reporting requirements when remuneration to be determined by committee of inspection (2) Before a remuneration determination for a trustee is made by a committee of inspection under section 60‑10 of the Insolvency Practice Schedule (Bankruptcy), the trustee must: (a) prepare a report setting out: (i) such matters as will enable the committee of inspection to make an informed assessment as to whether the proposed remuneration is reasonable; and (ii) the right of the regulated debtor and creditors to elect to receive a remuneration claim notice under section 70‑47; and (b) give a copy of the report to each member of the committee of inspection and the regulated debtor at the same time as notification is given of the relevant meeting of the committee. Reporting requirements when remuneration to be determined by creditors (3) Before a remuneration determination for a trustee is made by resolution of the creditors under section 60‑10 of the Insolvency Practice Schedule (Bankruptcy), the trustee must prepare a report setting out: (a) such matters as will enable the creditors to make an informed assessment as to whether the proposed remuneration is reasonable; and (b) the right of the regulated debtor and creditors to elect to receive a remuneration claim notice under section 70‑47. (4) A copy of the report referred to in subsection (3) must be given to each of the creditors and the regulated debtor: (a) if the proposed remuneration determination will be put to the creditors at a meeting—at the same time as notice of the meeting is given; or (b) if the proposed remuneration determination will be put to the creditors in accordance with section 75‑40 of the Insolvency Practice Schedule (Bankruptcy) (proposals without meeting)—at the same time as notice of the proposal under that section is given. Contents of report (5) Without limiting paragraph (2)(a) or subsection (3), the report must set out the following: (a) a summary description of the major tasks performed, or likely to be performed, by the trustee; (b) the costs associated with each of those major tasks and the method of calculation of the costs; (c) the periods at which the trustee proposes to withdraw funds from the regulated debtor’s estate in respect of the trustee’s remuneration; (d) an estimated total amount, or range of total amounts, of the trustee’s remuneration; (e) an explanation of the likely impact of that remuneration on the dividends (if any) to creditors.