Sterling Ford - Insolvency & 
Bankruptcy Services


   STERLING FORD - FIXED FEE AND DISBURSEMENT PACKAGES


OUR CHARGES POLICY:

To provide complete transparency in our charges for the cost effective, value for money services we offer

MEMBERS VOLUNTARY LIQUIDATIONS - MVLs

WHY STERLING FORD?

Since 1990 we have acted for:
  • a large number of different sized estates: from family owned and single member companies, with gross asset values as small as £50,000 to in excess of £100m,
  • for private clients wanting to take advantage of entrepreneurís relief, whether as part of a retirement strategy, a change in career direction or an exit from an investment, to large groups in media, property, shipping, leasing, to professional practices in accounting and legal services, requiring a tax driven restructuring solution.
  • in implementing complex in specie distributions whatever the asset classes held, including, but not limited to: real estate, intellectual property, music and publishing rights, investment portfolios, whether held in the UK or in another jurisdiction.


FIXED FEES AND DISBURSEMENT PACKAGE
[With effect from 1 March 2017]:


(a) Fixed Fee - includes: basic administration [preparation of forms including Declaration of Solvency, for up to 6 members [of same class of share capital for companies] notice of general meeting, proxy forms and short notice waivers, minutes, resolutions, etc for placing company in members' voluntary liquidation, appointing liquidator, giving/advertising Notice of: the liquidation, the appointment and of any claims for proving; drawing up Deed of Indemnity, discharging any outstanding creditors' claims [up to 5 creditors] including directors'/designated members' expenses and member approved accountant's fee, obtaining tax clearance for pre and post-liquidation periods, initiating VAT deregistration process if not already attended to, bringing liquidation to a conclusion within 12 months by convening/advertising Notice of final meeting and issuing final report, all other statutory compliance including all notices and returns to Companies House - £1,150.00 plus VAT [includes up to two interim [cash/ in specie] distributions and a final [cash/ in specie] distribution, with distribution statement(s)], subject to VAT deregistration being effected before liquidation by client/their accountant. THEN, ONLY IF APPLICABLE:

(b) Creditors' [trade/expense/other] claims - basic fee per creditor covers receiving and entering claim on IP System, admitting claim, obtaining directors'/members' approval of claim if not disclosed in Statement of Assets and Liabilities and discharging with statutory interest calculated up to date of payment - £100 plus VAT - this does not include any time spent in dealing with any disputed claims, which would be subject to normal charge out rates.

(c) Distributions (Cash) - per additional distribution including preparation of distribution statement- £150 plus VAT

(d) Distributions (in specie) - per additional distribution including preparation of distribution statement - £150 plus VAT

Normal charge out rates [current schedule available on request] will apply for time spent on anything not covered/priced above or otherwise agreed.

Disbursements

Where expenses are incurred in respect of the solvent estate they will be recharged. Such expenses can be divided into two categories.

Category 1

This heading covers expenses where Sterling Ford has met a specific cost in respect of the solvent estate where payment has been made to a third party. Such expenses may include items such as [statutory] advertising, couriers, travel (by public transport), searches at Companies House, land registry searches, fees in respect of swearing legal documents, external printing costs etc. In each case the recharge will be reimbursement of a specific expense incurred. Where applicable, disbursements will be subject to VAT at the prevailing rate.

Estimated Category 1 Disbursements are as follows:

Statutory Advertising - £264.00 plus VAT (re: advertising of resolution, appointment and notice to prove)

Insurance/ Bonding premium [no VAT] subject to scale based on value of assets comprised in liquidation -


Band of Asset valuePremium
£0 to £499£15
£500 to £5,000£22
£5,001 to £10,000£22
£10,001 to £25,000£40
£25,001 to £50,000£93
£50,001 to £100,000£138
£100,001 to £250,000£255
£250,001 to £500,000£360
£500,001 to £1,000,000£515
£1,000,001 to £2,000,000£760
£2,000,001 to £3,500,000£910
£3,500,001 to £5,000,000£1,365
£5,000,001 plus£2,760
Source: AUA Insolvency Risk Services Limited - Table C Sterling Ford - 1st March 2017

Category 2

Additionally the firm recharges expenses for example postage, stationery, photocopying charges, telephone and fax costs, which cannot be economically recorded in respect of an each specific case. Such expenses, which are apportioned to cases, require the approval of the members before they can be drawn, and these are known as category 2 disbursements. The policy of Sterling Ford, effective from 1 January 2003, is to recharge any expense which is specific to the case.
Sterling Ford's Category 2 disbursements are capped at £50 plus VAT.

Therefore, with assets of £100,000, the total Category 1 and Category 2 Disbursements amount to £489 plus VAT or £501.80 including VAT. VAT will be recovered on Sterling Ford's fees and disbursements for those companies that are registered for VAT.