trustee.

80. The trustee shall keep, in manner prescribed, ss. 80-82. proper books, in which he shall from time to time Books to be cause to be made entries or minutes of proceedings2 kept by at meetings, and of such other matters as may be prescribed, and any creditor of the bankrupt may, subject to the control of the Court, personally or by his agent inspect any such books.

1 r r. 207-209.

2 When signed at the same or next ensuing meeting by a person describing himself as or appearing to be chairman may be received in evidence without further proof (s. 133 (1)), and until the contrary is proved a meeting in respect whereof a minute has been so signed shall be deemed to have been duly convened and the resolutions or proceedings to have been duly passed and had (s. 133 (2)).

In Schedule I., s. 25, it is enacted that the chairman of every meeting shall cause the minutes of the proceedings to be drawn up and entered in a book to be kept for that purpose.

A copy of every resolution certified by the official receiver, or, as the case may be, the trustee, is to be sent by him to the Registrar of the Court in which the matter is pending (r. 190).

81.-(1.) Every trustee in a bankruptcy shall from Annual statetime to time, as may be prescribed, and not less than ment of proceedings. once in every year during the continuance of the bankruptcy, transmit to the Board of Trade a statement showing the proceedings in the bankruptcy up to the date of the statement, containing the prescribed particulars, and made out in the prescribed form.2

(2.) The Board of Trade shall cause the statements so transmitted to be examined, and shall call the trustee to account for any misfeasance, neglect, or omission. which may appear on the said statements or in his accounts or otherwise, and may require the trustee to make good any loss which the estate of the bankrupt may have sustained by the misfeasance, neglect, or omission.

Release of Trustee.

82. (1.) When the trustee has realised all the property Release of of the bankrupt, or so much thereof as can, in his opinion,

trustee.

s. 82.

be realised without needlessly protracting the trusteeship, and distributed a final dividend, if any, or has ceased to act by reason of a composition having been approved, or has resigned, or has been removed from his office, the Board of Trade shall, on his application, cause a report on his accounts to be prepared, and, on his complying with all the requirements of the Board, shall take into consideration the report, and any objection which may be urged by any creditor or person interested against the release of the trustee, and shall either grant or withhold the release accordingly, subject nevertheless to an appeal to the High Court.

Before applying to the Board of Trade for his release, a trustee must give notice in Form No. 93 in the Appendix, to all the creditors who have proved, and send with such notice a summary of his receipts and payments (r. 226).

As to the form of application, see Form No. 94 in the Appendix.

Upon being released a trustee must hand over all books, documents, and accounts to the official receiver, or new trustee, if any (r. 214).

(2) Where the release of a trustee is withheld the Court may, on the application of any creditor or person interested, make such order as it thinks just, charging the trustee with the consequences of any act or default he may have done or made contrary to his duty.

(3.) An order of the Board releasing the trustee shall discharge him from all liability in respect of any act done or default made by him in the administration of the affairs of the bankrupt, or otherwise in relation to his conduct as trustee, but any such order may be revoked on proof that it was obtained by fraud or by suppression or concealment of any material fact.

Notwithstanding his release a trustee may be ordered by the Court to pay over a dividend which he has actually received (In re Prager, Ex pte Société Cockrill, 3 Ch. D., 115), though the release will discharge him from any liability he may be under in the character of trustee in respect of the bankrupt's estate, e.g., rent accrued due during the bankruptcy (Ex pte Carter, In re Ware, 8 Ch. D., 731).

(4) Where the trustee has not previously resigned or been removed, his release shall operate as a removal of

him from his office, and thereupon the official receiver ss. 83-85. shall be the trustee.

Official Name.

83. The trustee may sue and be sued by the official Official name name of "the trustee of the property of

a bankrupt," inserting the name of the bankrupt, and by that name may in any part of the British dominions or elsewhere hold property of every description, make contracts, sue and be sued, enter into any engagements binding on himself and his successors in office, and do all other acts necessary or expedient to be done in the execution of his office.

Taken alone, this section would seem to confer upon the trustee a power to carry on an action either as plaintiff or defendant in his official name at his own discretion, but it must be read in connection with s. 57 (2), which renders necessary the permission of the committee of inspection, or if there is no committee, of the Board of Trade (s. 22 (9) ).

Appointment and Removal.

of trustee.

or successive

84. (1.) The creditors may, if they think fit, appoint Power to more persons than one to the office of trustee, and when appoint joint more persons than one are appointed they shall declare trustees. whether any act required or authorised to be done by the trustee is to be done by all or any one or more of such persons, but all such persons are in this Act included under the term "trustee," and shall be joint-tenants of the property of the bankrupt.

(2.) The creditors may also appoint persons to act as trustees in succession in the event of one or more of the persons first named declining to accept the office of trustee, or failing to give security, or not being approved of by the Board of Trade.1

1 As to the first appointment of, and security required from, trustees, see

S. 21.

85. If a receiving order is made against a trustee he Office of shall thereby vacate his office of trustee.

trustee

vacated by insolvency.

Removal of trustee.

ss. 86,87. 86.-(1.) The creditors may, by ordinary resolution,1 at a meeting specially called for that purpose,2 of which seven days notice has been given, remove a trustee appointed by them, and may at the same or any subsequent meeting appoint another person to fill the vacancy as herein-after provided3 in case of a vacancy in the office of trustee.

Proceedings in case of

vacancy in office of trustee.

1 Under the Act of 1869 [s. 83 (4)] a special resolution was necessary. 2 It would be the duty of the official receiver or continuing trustee (if any) to summon such meeting, if so directed by the Court, or requested in writing so to do by one-fourth in value of the creditors (Sch. I., s. 5, and s. 89 (2)).

A meeting for the purpose of considering the propriety of removing a trustee, if one-fourth in value of the creditors so desire, may be summoned by a member of the committee of inspection, or by the official receiver on the deposit of a sum sufficient to cover the expense (r. 227).

3 s. 87.

(2.) If the Board of Trade are of opinion that a trustee appointed by the creditors is guilty of misconduct, or fails to perform his duties under this Act, the Board may remove him from his office, but if the creditors, by ordinary resolution, disapprove of his removal, he or they may appeal against it to the High Court.

When the Board of Trade removes a trustee certain notices are required to be given (r. 222).

87.-(1). If a vacancy occurs in the office of a trustee the creditors in general meeting may appoint a person to fill the vacancy, and thereupon the same proceedings shall be taken as in the case of a first appointment.1

1 s. 21.

(2.) The official receiver shall, on the requisition of any creditor, summon a meeting for the purpose of filling any such vacancy.

As to the form of notice for such meeting, see Form No. 67 in the Appendix.

(3.) If the creditors do not within three weeks after the occurrence of a vacancy appoint a person to fill the vacancy, the official receiver shall report the matter to

the Board of Trade, and the Board may appoint a trustee; ss. 87-89.

but in such case the creditors or committee of inspection

shall have the same power of appointing a trustee as in

the case of a first appointment.1

1 s. 21.

(4) During any vacancy in the office of trustee the official receiver shall act as trustee.

Voting powers of Trustee.

trustee.

88. The vote of the trustee, or of his partner, clerk, Limitation solicitor, or solicitor's clerk, either as creditor or as proxy powers of for a creditor, shall not be reckoned in the majority required for passing any resolution affecting the remuneration or conduct of the trustee.

Control over Trustee.

trustee and

thereof.

89.-(1.) Subject to the provisions of this Act the Discretionary trustee shall, in the administration of the property of the powers and bankrupt and in the distribution thereof amongst his control creditors, have regard to any directions that may be given by resolution of the creditors at any general meeting, or by the committee of inspection, and any directions so given by the creditors at any general meeting shall in case of conflict be deemed to override any directions given by the committee of inspection.

If there is any just or reasonable cause shown why the trustee should not follow the directions given to him by the creditors, the Court would order him to disregard them on an application to it under sub-s. 3, infrà (Ex pte Cocks, In re Poole, 21 Ch. D., 397).

(2.) The trustee may from time to time summon general meetings of the creditors for the purpose of ascertaining their wishes, and it shall be his duty to summon meetings at such times as the creditors, by resolution, either at the meeting appointing the trustee or otherwise may direct, or whenever requested in writing to do so by one fourth in value of the creditors.

cf., Sch. I., s. 5.