Clients often wonder what a disbursement is. Quite simply it is a cost / specific expenditure which relates to the administration of the MVL. In the administration of our MVL's Frost Group will charge disbursements on bonding and statutory advertising within the London Gazette at the cost price to us. There will be no sneakily hidden surprise additions that you will not be made aware of.
However, in the case of a Gold Package MVL there may be external supplies of incidental services specifically identifiable to the case, eg large volume postage, printing, room hire and document storage, this information will be disclosed and the costs recovered.
There are two main types of disbursements associated with an MVL, these are statutory advertising and bonding:-
There are three statutory notices required which will appear in the London Gazette. The Gazette can be accessed by clicking this link The London Gazette. The Gazette offers a permanent official public record of important statutory and non-statutory notices that can be used to support legal and other processes and act as a means of advertising legal notices. The initial three Statutory Notices to be advertised as per legislation rules in the London Gazette are:-
- Notice of Resolutions to Wind-Up;
- Notice of Appointment of Liquidators and;
- Notice to Creditors of intended distribution
Prices (excluding VAT) valid for the three adverts are £213.
Specific Bond Rates
Bonding is an insurance policy to ensure that your money is safe whilst held in our firm's client account. It basically protects your money against any fraud or malpractice by our staff. Frost Group use the services of IRS Insolvency Risk Services, a trading name of AUA Insolvency Risk Services Limited. All rates are charged at cost price from IRS, there is no mark up or added charge passed on to our clients, and we believe they are the most cost effective and secure available. Frost Group's specific bond rates effective 1 March 2018 are competitively priced, with premiums commencing from £10. Our bonding prices for MVL's can be viewed on the attached file Specific Bond Rates 2018
The majority of our MVL's are non-cash, ie the company assets are distributed in specie and these attract a 50% discount from our insurers. Our non-cash MVL rates are listed below:-
|Specific Penalty Value:|
|Cases with assets under £500||10.00|
|Assets £501 - £5,000||10.00|
|Assets £5,001 - £10,000||15.00|
|Assets £10,001 - £25,000||20.25|
|Assets £25,001 to £50,000||36.75|
|Assets £50,001 to £100,000||59.25|
|Assets £100,001 to £250,000||99.00|
|Assets £250,001 to £500,000||140.63|
|Assets £500,001 to £1,000,000||198.00|
|Assets £1,000,001 to £2,000,000||290.63|
|Assets £2,000,001 to £3,500,000||375.00|
|Assets £3,500,001 to £5,000,000||515.63|
|Assets over £5,000,000||600.00|
VAT is chargeable on our fee and also on advertising in the London Gazette and also for the bond. The VAT is recovered by Frost Group on your behalf during the course of the Liquidation.