The liquidator’s fee is sometimes aligned with the amount realized during liquidation. Thus, the liquidator is incentivized to choose the value maximization mode of liquidation of the corporate debtor.
Regulation 4(2), Liquidation Regulations, 2016 state that the liquidator shall be entitled to the same fee as a resolution professional and ‘a percentage of the amount realised net of other liquidation costs …’. Also see Report of the Insolvency Law Committee (2020), pages 71-73 which mention the same point.