PART IV
TRUSTEE IN BANKRUPTCY
33.
—(1) The court may —
(a)
on making a bankruptcy order; and
(b)
on the application of the creditor who applied for the bankruptcy order,
appoint a person other than the Official Assignee to be the trustee of the bankrupt’s estate.
[42/2005]
(2) The official name of the trustee shall be —
(a)
“the Trustee of the estate of (name of bankrupt), a Bankrupt”; or
(b)
“the Trustee in Bankruptcy of (name of bankrupt), a Bankrupt”.
34. No person shall be appointed as a trustee in bankruptcy unless he satisfies the court that —
(a)
he is —
(i)
registered as a public accountant under the Accountants Act (Cap. 2);
(ii)
an advocate and solicitor; or
(iii)
such other person as the Minister may, by order published in the Gazette, prescribe; and
(b)
he has not been convicted of an offence involving fraud or dishonesty punishable on conviction by imprisonment for 3 months or more,
and he has consented in writing to being appointed as a trustee.
35.
—(1) No person appointed as a trustee under section 33 shall commence acting as such trustee until he has given security in the prescribed manner to the satisfaction of the Official Assignee that he shall faithfully perform his duties and duly observe all the requirements imposed on him by this Act, the rules or any other written law with respect to the performance of his duties.
(2) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000.
36.
—(1) Subject to subsection (3) and section 39, a trustee shall —
(a)
have all the functions and duties of the Official Assignee in relation to the conduct of a bankrupt and the administration of his estate as provided in this Act; and
(b)
exercise all the powers of the Official Assignee.
(2) Any reference in this Act or the rules to the Official Assignee shall, unless the context otherwise requires, include a reference to a trustee.
37.
—(1) Every trustee shall, in the manner and at the times prescribed by the rules, pay all moneys received by him into such bank account as is prescribed by those rules or as may be specified by the court.
(2) Any trustee who pays any moneys received by him as trustee into any bank account other than the bank account prescribed or specified under subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 2 years or to both.
38.
—(1) A trustee shall be entitled to receive such salary or remuneration as is determined in the following manner:
(a)
by agreement between the trustee and the creditors’ committee, if any;
(b)
failing any agreement with the creditors’ committee or where there is no such committee, by a special resolution of the creditors whose debts have been admitted for the purpose of voting and who are present in person or by proxy and voting at a meeting to be convened by the trustee by a notice to each creditor in accordance with subsection (2); or
(c)
failing a determination in the manner referred to in paragraph (a) or (b), by the court.
(2) The trustee shall attach to every notice under subsection (1)(b) a statement of all receipts and expenditure by the trustee and the amount of remuneration sought by him.
39.
—(1) The Official Assignee shall take cognizance of the conduct of a trustee in the administration of the estate of a bankrupt.
(2) If the trustee does not faithfully perform his duties or duly observe all the requirements imposed on him by this Act, the rules or any other written law with respect to the performance of his duties, or if any complaint is made to the Official Assignee by any creditor or bankrupt in regard thereto, the Official Assignee shall inquire into the matter and take such action thereon as he may think expedient.
(3) The Official Assignee may —
(a)
at any time require a trustee to answer any inquiry in relation to his administration of the estate of a bankrupt; and
(b)
direct an investigation to be made of the books and vouchers of the trustee.
(4) It shall be the duty of the trustee —
(a)
to furnish the Official Assignee with such information;
(b)
to produce to the Official Assignee, and permit inspection by the Official Assignee of, such books, papers and other records; and
(c)
to give the Official Assignee such other assistance,
as the Official Assignee may reasonably require for the purpose of enabling him to carry out his functions in relation to the bankruptcy.
(5) The Official Assignee may, having regard to the results of any inquiry or investigation made under this section, apply to the court for the removal of the trustee.
40.
—(1) If a bankrupt or any of his creditors or any other person is dissatisfied by any act, omission or decision of a trustee in relation to the trustee’s administration of the bankrupt’s estate, he may apply to the court to review such act, omission or decision and on hearing such an application the court may —
(a)
confirm, reverse or modify any act or decision of the trustee; or
(b)
give such directions to the trustee or make such other order as it may think fit.
(2) A trustee may apply to the court for directions in relation to any particular matter arising under the bankruptcy.
41.
—(1) A trustee may be removed from office only by an order of the court or by a general meeting of the bankrupt’s creditors summoned especially for that purpose in accordance with the rules.
(2) A trustee shall vacate his office if he ceases to be qualified to hold office as a trustee under section 34(a) or (b).
(3) A trustee may resign his office by giving one month’s notice of his resignation to the court and the Official Assignee.
(4) A trustee shall vacate his office if the bankruptcy order is annulled.
42. Where the appointment of any person as trustee of a bankrupt’s estate fails to take effect or where a vacancy arises in the office of a trustee whose appointment has taken effect, the Official Assignee —
(a)
shall act as the trustee of the bankrupt’s estate until the vacancy is filled; and
(b)
may summon a general meeting of the bankrupt’s creditors for the purpose of filling the vacancy.
43.
—(1) Where —
(a)
the trustee of a bankrupt’s estate has misapplied or retained, or become accountable for, any money or other property comprised in the bankrupt’s estate; or
(b)
the estate of a bankrupt has suffered any loss in consequence of any misfeasance or breach of fiduciary or other duty by a trustee of the estate in the carrying out of his functions,
the Official Assignee or any creditor of the bankrupt or the bankrupt himself may apply to the court for any order specified in subsection (2).
(2) Upon hearing an application made under subsection (1), the court may, for the benefit of the estate, order the trustee to —
(a)
repay, restore or account for any money or other property (together with interest at such rate as the court may think just); or
(b)
pay such sum by way of compensation in respect of the misfeasance or breach of fiduciary or other duty as the court may think just.
(3) Any order made by the court under subsection (2) shall be without prejudice to any liability on the part of the trustee arising apart from this section.
(4) Where a trustee seizes or disposes of any property which is not comprised in the bankrupt’s estate and at the time of the seizure or disposal the trustee believes, and has reasonable grounds for believing, that he is entitled (whether in pursuance of an order of the court or otherwise) to seize or dispose of that property, the trustee —
(a)
shall not be liable to any person (whether under this section or otherwise) in respect of any loss or damage resulting from the seizure or disposal except in so far as the loss or damage is caused by the negligence of the trustee; and
(b)
shall have a lien on the property or the proceeds of its sale for such of the expenses of the bankruptcy as were incurred in connection with the seizure or disposal.