THE TRUSTEE IN BANKRUPTCY
1) Appointment of trustee
The trustee is appointed:
- By the creditors by ordinary resolution, or
- By the committee of inspection, if so resolved by the creditors, or
- By the court if a trustee is not otherwise appointed within four weeks of the adjudication or within seven days of rejection of a composition or scheme.
A vacancy is filled in the same way, the court having power to appoint if the vacancy is not filled within three weeks. A trustee appointed by the court may be replaced by a new trustee appointed by the creditors or committee of inspection.
2) Court objections
The court may object to a trustee appointed by the creditors or committee of inspection on any of the following grounds:
- Appointment not made in good faith by a majority in value of creditors voting;
- Person appointed not fit to act as trustee;
- Trustee’s relationship with bankrupt or a creditor makes it difficult for him to act impartially;
- Misconduct or failure to render accounts or deal properly with unclaimed moneys, in a previous trusteeship.