On 6 May 2016, Guardian Wealth Management Qatar (GWMQ) appointed Opus Restructuring to handle its voluntary liquidation, according to court documents.
The decision to exit the country was made in December 2015, as a result of the “particularly challenging operating environment” as well as other factors beyond Guardian’s control, the company said at the time.
As part of the contract, fees for the liquidation work were capped at £25,000.
Court case
However, in light of “unanticipated additional work” required, the liquidator approached Guardian to request a fee adjustment.
After receiving no “substantive response”, she filed an application with the court on 5 December 2017 outlining that “the nature and complexity of the liquidation had changed significantly since the initial discussions on remuneration”.
Opus told International Adviser: “At the outset of the engagement for the company to be placed into a solvent Members’ Voluntary Liquidation, a fixed fee was agreed by the shareholders. During the course of the assignment, the scope changed and significantly more time was incurred.
“Unfortunately the shareholders did not engage to agree any increase in the original fixed fee and it was necessary for the joint liquidators to apply to court demonstrating the work undertaking and justifying the proposed increase.”
As part of the process, Qatar’s International Court served a notice on GWMQ in March 2018.
A hearing date was set for 24 April.
Fees increased
According to court documents released on 22 April, a hearing scheduled for 24 April was “vacated” after an agreement was reached.
Opus confirmed to IA: “In advance of the hearing to decide the application, the shareholders confirmed that they had no objection to the proposed increase.”
The documents are dated 16 April and show that GWMQ had “no objection” to paying a total £125,806.25 in fees to Opus.
The increased fees include a sum of £25,000 that has already been paid.
Opus will take the additional fees out of the assets of the company as an expense of the liquidation.
Regulatory fine
Guardian’s exit from Qatar has not been a smooth process, with the Qatar Financial Centre Regulatory Authority imposing a $1m fine on the company on Sunday.
Chief executive David Howell has suggested that the “disproportionate financial penalty” was levied in retaliation to its decision to leave Qatar.
