COMMITTEE OF INSPECTION
Appointment:
A committee of inspection may be appointed by the creditors at their first or any subsequent meeting to supervise the trustee.
Membership:
The committee consists of between three and five members, who must be creditors whose proofs have been admitted, or the holders of general proxies of powers of attorney from them; a person may be appointed before, but cannot act until, these conditions are satisfied. Membership may be terminated by:
1. Written resignation to the trustee;
2. Bankruptcy of member or arrangement with his creditor;
3. Failure to attend five consecutive meetings; or
4. Removal by creditors.
5. Vacancies are filled by the creditors.
Meetings:
Meetings must be held at least once a month and may be called by the trustee or any member; a majority of members constitutes a quorum.
Fiduciary position of members
A member is not entitled to payment for his services or to enter into any transaction in relation to the bankrupt's estate, except with the sanction of the court.