Control Over Trustee

In his administration of the estate the trustee is subject to control by the committee of inspection, the creditors, the court and the Board of Trade. The committee is appointed by the creditors, and must consist of not more than five nor less than three creditors or authorized representatives of creditors. It acts by a majority present at a meeting, and should be convened once a month unless it otherwise directs. If no committee is appointed, the Board of Trade may give any direction or permission which might have been given by a committee. Directions given by the committee, if not inconsistent with the provisions of the act, are binding on the trustee, unless contrary to or overruled by those of the creditors or of the court. The official receiver or trustee may summon a meeting of the creditors at any time to ascertain their wishes, and must do so when so required by one-sixth in value of the creditors or when directed by the court. The Board of Trade may also direct the official receiver to summon a meeting for the purpose of reviewing any act done by the trustee or any resolution of the committee of inspection.

Further, the trustee may apply to the court for directions in any particular matter, and the court may also, on the application of any person aggrieved reverse or modify any act of the trustee, or make such order as it deems just. The directions of the court override those of the creditors. The Board of Trade is required to take general cognizance of the conduct of trustees, to inquire into any complaints by creditors, and in the event of any trustee not faithfully performing his duties, to take such action, including the power of removal, as may be expedient. It may also direct a local investigation of the trustee's books and accounts, and may require him to answer any inquiries, or may apply to the court to examine him on oath. If any loss has arisen to the estate from any misfeasance, neglect or omission of the trustee, it may require him to make it good. The orders of the Board of Trade under the powers conferred by the act may be enforced by the court by committal of the trustee or otherwise.

Audit Of Accounts

The trustee's accounts must be audited by the committee of inspection not less than once in every three months; and once in every six months, as well as at the close of the administration, the record and cash books must also be submitted with the vouchers, and the committee's certificate of audit to the Board of Trade for final audit. If it appears that the trustee has retained more than £50 in hand for more than ten days without a satisfactory explanation, he may be removed from office, surcharged with interest at the rate of 20% per annum and lose all claim to remuneration.

Remuneration

The trustee's remuneration is fixed by the creditors or by the committee if so authorized by them. It must be in the nature of a percentage on the amount of the realization and on the dividends. If one-fourth of the creditors in number or value dissent from the resolution, or if the bankrupt satisfies the Board of Trade that the remuneration is excessive, the Board may review the same and fix the remuneration. A trustee may not receive any remuneration for services rendered in any other capacity, e.g. as solicitor, auctioneer, etc., beyond that voted to him as trustee; nor may he share his remuneration with the bankrupt, the solicitor or other person employed about the bankruptcy; or receive from any person any gift, or other pecuniary or personal benefit in connexion therewith.