The fee for an Interim Resolution Professional (IRP) in the insolvency resolution process for corporate persons is determined as a percentage of the realisable value, varying based on the duration from the insolvency commencement date. This structured approach ensures that the fees are aligned with the timeline and complexity of the resolution process.
Understanding IRP Fees
The fee payable to the Interim Resolution Professional is calculated according to the following schedule:
| Time period from insolvency commencement date | Fee as % of Realisable Value |
|---|---|
| Less than or equal to 165 days | 1.00 |
| More than 165 days but less than or equal to 270 days | 0.75 |
| More than 270 days but less than or equal to 330 days | 0.50 |
| More than 330 days | 0.00 |
As evident from the table, the fee percentage decreases as the duration of the insolvency resolution process extends. Notably, if the process extends beyond 330 days, no fee is applicable based on the realisable value for the IRP. This structure encourages a swift resolution while outlining a clear remuneration model for professionals overseeing such processes.
