Practice question
A receiver hires an outside consultant and charges the debtor unlimited fees, saying officer-of-court status removes every approval and reasonableness requirement. Which is correct under Sections 31(j) and 33?
- All charges are automatically final
- Only the consultant’s invoice controls
- Engagement requires court approval and compensation must be reasonable under court-approved terms after notice and hearing
- All outside assistance is forbidden
- The debtor’s shareholders alone set every fee
Legal references
- RA 10142 (FRIA), Sections 4, 7, 9, 17-18, 31-35, 64-70 and 115-121: https://lawphil.net/statutes/repacts/ra2010/ra_10142_2010.html
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