When must a liquidator seek approval? Section 477(2B) and cost agreements

Jacqueline Wilcock, Kathryn Lechner and Paul Welling of KHQ explain that recent decisions in Frigger, Bredenkamp, Naidenov and McCabe clarify that liquidators only require approval under section 477(2B) when a long-term retainer or funding agreement is entered into on behalf of the company rather than in the liquidator’s own capacity, with the courts willing to grant retrospective approval where the liquidator has acted prudently and transparently but unwilling to do so where delay or inadequate assessment of prospects undermines the statutory safeguard.

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