that it has not been made in good faith by a majority in value of the creditors voting, or that the person appointed is not fit to act as trustee, or that his connexion with or relation to the bankrupt or his estate or any particular creditor makes it difficult for him to act with impartiality in the interests of the creditors. generally.

(3.) Provided that where the Board make any such objection they shall, if so requested by a majority in value of the creditors, notify the objection to the High Court, and thereupon the High Court may decide on its validity.

(4.) The appointment of a trustee shall take effect as from the date of the certificate.

(5.) The official receiver shall not, save as by this Actt provided, be the trustee of the bankrupt's property.

(6.) If a trustee is not appointed by the creditors within four weeks from the date of the adjudication, or, in the event of negotiations for a composition or scheme being pending at the expiration of those four weeks, then within seven days from the close of those negotiations by the refusal of the creditors to accept, or of the Court to approve, the composition or scheme, the official receiver shall report the matter to the Board

That is to the judge of the chancery division of the High Court to whom jurisdiction in bankruptcy is assigned by the Lord Chancellor, see, post, clause 94.

† Under clause 54, until a trustee is appointed the official receiver will be trustee for the purposes of the Act. Under clause 70, the official receiver will act as trustee during any vacancy in the office of trustee. And under clause 121, the official receiver will be trustee when an estate is being administered in a summary manner as a "small bankruptcy." And under clause 125 (5) he will be trustee under the administration in bankruptcy of the estate of a person dying insolvent.

of Trade, and thereupon the Board of Trade shall appoint some fit person to be trustee of the bankrupt's property, and shall certify the appointment.

(7.) Provided that the creditors or the committee of inspection (if so authorized by resolution of the creditors) may, at any subsequent time, if they think fit, appoint a trustee, and on the appointment being made and certified the person appointed shall become trustee in the place of the person appointed by the Board of Trade.

(8.) When a debtor is adjudged bankrupt after the first meeting of creditors has been held, and a trustee has not been appointed prior to the adjudication, the official receiver shall forthwith summon a meeting of creditors for the purpose of appointing a trustee.

22. Committee of Inspection.—(1.) The creditors, qualified to vote, may at their first or any subsequent ineeting, by resolution, appoint from among the creditors qualified to vote, or the holders of general proxiest or general powers of attorney from such creditors, a committee of inspection for the purpose of superintending the administration of the bankrupt's property by the trustee. The committee of inspection shall consist of not more than five nor less than three persons.

(2.) The committee of inspection shall meet at such times as they shall from time to time appoint, and failing such appointment, at least once a month; and

*As to who are "qualified to vote," see Schedule I., rules 8 to 13. † As to general and special proxies, and the rights they respectively confer upon their holders to vote at meetings of creditors, see the first schedule, articles 16 to 21.

See clause 57 for the things in respect to which the direction or permission of the committee of inspection is requisite.

the trustee or any member of the committee may also call a meeting of the committee as and when he thinks necessary.

(3.) The committee may act by a majority of their members present at a meeting, but shall not act unless a majority of the committee are present at the meeting.

(4.) Any member of the committee may resign his office by notice in writing signed by him, and delivered to the trustee.

(5.) If a member of the committee becomes bankrupt, or compounds or arranges with his creditors, or is absent from five consecutive meetings of the committee, his office shall thereupon become vacant.

(6.) Any member of the committee may be removed by an ordinary resolution* at any meeting of creditors of which seven days' notice has been given, stating the object of the meeting.

(7.) On a vacancy occurring in the office of a member of the committee, the trustee shall forthwith summon a meeting of creditors for the purpose of filling the vacancy, and the meeting may, by resolution, appoint another creditor or other person eligible as above to fill the vacancy.

(8.) The continuing members of the committee, provided there be not less than two such continuing members, may act notwithstanding any vacancy in their body; and where the number of members of the committee of inspection is for the time being less than five, the creditors may increase that number so that it do not exceed five.

(9.) If there be no committee of inspection, any act or thing or any direction or permission by this Act authorized or required to be done or given by the

*See clause 168.

committee may be done or given by the Board of Trade on the application of the trustee.

23. Power to accept Composition or Scheme after Bankruptcy Adjudication.-(1.) Where a debtor is adjudged bankrupt the creditors may, if they think fit, at any time after the adjudication, by special resolution, resolve to entertain a proposal for a composition in satisfaction of the debts due to them under the bankruptcy, or for a scheme of arrangement of the bankrupt's affairs; and thereupon the same proceedings shall be taken and the same consequences shall ensue as in the case of a composition or scheme accepted before adjudication.*

(2.) If the Court approves the composition or scheme it may make an order annulling the bankruptcy and vesting the property of the bankrupt in him or in such other person as the Court may appoint, on such terms, and subject to such conditions, if any, as the Court may declare.

(3.) If default is made in payment of any instalment due in pursuance of the composition or scheme, or if it appears to the Court that the composition or scheme cannot proceed without injustice or undue delay, or that the approval of the Court was obtained by fraud, the Court may, if it thinks fit, on application by any person interested, adjudge the debtor bankrupt, and annul the composition or scheme, but without prejudice to the validity of any sale, disposition, or payment duly made, or thing duly done, under or in pursuance of the composition or scheme. Where a debtor is adjudged bankrupt under this sub-section, all debts, provable in other respects, which have been

* See ante clause 18.

contracted before the date of such adjudication shall be provable in the bankruptcy.

Control over Person and Property of Debtor.

24. Duties of Debtor as to Discovery and Realization of Property.*-(1.) Every debtor against whom a receiving order is made shall, unless prevented by sickness or other sufficient cause, attend the first meeting of his creditors, and shall submit to such examination and give such information as the meeting may require.

(2.) He shall give such inventory of his property,† such list of his creditors and debtors, and of the debts due to and from them respectively, submit to such examination in respect of his property or his creditors, attend such other meetings of his creditors, wait at such times on the official receiver, special manager, or trustee, execute such powers of attorney, conveyances,

* This clause corresponds substantially to clause 19 of the Bankruptcy Act of 1869; but it is more precise and stringent in its provisions and requirements, and, what is perhaps still more important, it applies to every debtor against whom a receiving order has been made, and not merely (as in the Act of 1869) to a person who had been adjudicated bankrupt. This change is naturally and necessarily implied by the scheme of the present Act, which makes a receiving order the basis of every proceeding under it; and regards every debtor against whom such order is made as a possible bankrupt, and therefore as a person liable to be treated as such until his creditors, with the sanction of the court, resolve to accept a composition. A bankrupt will not be relieved by his discharge from the obligation to perform the duties prescribed by the Act during his bankruptcy. Therefore, even after his discharge, he may be committed for contempt of court if he wilfully fail to perform the duties imposed upon him by this section, or if he fail to deliver to the trustee any part of his property which is divisible amongst his creditors.

+ See post, clauses 43 and 44, as to the property of a debtor available for distribution amongst his creditors.