Insolvency Practitioners (Amendment) Regulations, 2024 (SL 12 of 2024)

Summary

This is a 2024 amendment to the Insolvency Practitioners' Regulations (2023 Consolidation), made by the Insolvency Rules Committee under section 155(2) of the Companies Act (2023 Revision). It came into operation on 1 June 2024 and applies to all liquidation proceedings before the Cayman Islands court, whether pending, commenced before, or commenced after that date.

The amendment updates the rules on remuneration for official liquidators who agree to be paid on a time-spent (hourly) basis, revising paragraph 15(1) of the principal Regulations.

• Minimum rates: Liquidators and their firms cannot be required to accept less than the prescribed minimum hourly rates set out in the new Schedule.
• Maximum rates: Liquidation committees cannot agree to pay more than the prescribed maximum hourly rates set out in the new Schedule.
• Review cycle: The agreed scale applies initially until 31 December of the relevant year and must then be reviewed and renegotiated annually from 1 January.

The Regulations also replace the Schedule of prescribed hourly rates. Work performed on or after 1 June 2024 is remunerated under the new Schedule (Part A), while work performed before that date continues to be remunerated under the Schedule from the 2022 amendment regulations.

• Rate range: The new Schedule sets minimum and maximum US-dollar hourly rates for seven grades of staff, ranging from Administrators (US$65-265) up to Official Liquidators and Partners (US$630-1180).

Key obligations

• Official liquidators and their firms must not accept less than the minimum hourly rates prescribed in the Schedule when remunerated on a time-spent basis
• Liquidation committees must not authorise payment above the maximum hourly rates prescribed in the Schedule
• The agreed scale of hourly rates must be reviewed and renegotiated annually with effect from 1 January each year, after applying in the first instance until 31 December
• Work performed on or after 1 June 2024 must be remunerated using the rates in the new Schedule; work performed before that date must use the rates in the Schedule to the Insolvency Practitioners' (Amendment) Regulations 2022

Applies to

official liquidators, liquidation committees, insolvency practitioners

Deadlines

• 1 June 2024: Commencement Date of the Regulations; new prescribed hourly rates apply to work performed on or after this date
• 31st December: Agreed scale of hourly rates applies in the first instance until this date, per winding up order commencement
• 1st January each year: Scale of hourly rates must be reviewed and re-negotiated annually with effect from this date

Related documents

• This document amends Insolvency Practitioners' Regulations (2023 Consolidation)
• Insolvency Practitioners' Regulations (2026 Consolidation) replaces this document