Page:1902 Encyclopædia Britannica - Volume 26 - AUS-CHI.pdf/161

This page needs to be proofread.

bankruptcy 133 savings bank or friendly society, any balance in his hands due j office.. As the bankrupt’s property vests in the trustee to such bank or society has been held under the Acts relating to tne time being, and passes from trustee to trustee by operationfor of these bodies to be payable in preference to any other claim against aw, and without any formal act of conveyance, the continuity of J the estate. Other preferential claims are regulated by the Bank- the office is thus secured. ruptcy Acts and by the Preferentiad Payments in Bankruptcy Act Appointment of Trustee.—A trustee may be appointed by a of 1888, and include taxes, parochial and other local rates for not majonty m value of the creditors voting, at the first or any more than one year, wages and salaries for four months, but not lnee tmg or the exceeding £50 [limited in the case of ordinary labourers and work^ , > T eit appointment may be left to the commen to two months’ wages not exceeding £25], and agricultural crmfivTnaf108^60^11^ In , ofTrade ber case the appointment is subject to th e B ard labourers’ claims not exceeding one year’s wages, if hired by special that fh * ^ i ° > who may object on the ground contract for payment of a lump sum at the end of a year. These the VenerCarie£d°rS that It ^the acted in good faith in the interests of person claims are entitled to preference not only over funds in the hands occupies snlh a^’position °> in relation is not fit tocreditor act, or toappointed the debtor, to any n of the trustee, but also over the proceeds of any distraint levied occurs such ,akes U diffic lt fOT by the landlord within the three months prior to the receiving S, “ "previous case"he hashim act with^S beento removed from office order, the latter in that case becoming a preferred creditor for the ty, or that m any failure With0llt ood c amount so paid. Articled clerks and apprentices may also be ScoZTf g ause to render his eal from allowed repayment of a proportion of the premium on their un- Court be‘/at thdlt ^ ,AnaPP such objection to the High of a expired agreements. On the other hand, usual trade discounts but ir,1?}.^ahtr,mstance majority b eal is in value of the creditors, (exceeding 5 per cent.) must be deducted from traders’ proofs BpW being h2 confirmed, p °u aithe i aPP appointment. trustee-elect fatal must toalsothefurnish security and the following claims are postponed until the general Befoie a Ctl0n f t he Trade and 8 b creditors are paid in full, viz., claims by a married woman ken?unat0 t h amount ° + originally fixed, ’or to such ^ security must be for loans to the husband for the purposes of his business, claims W VP to,the amount as that department may require, throughout the tenurelesser of the trusteefor loans advanced to any person in business at a rate of interest ship, failing which the trustee is liable to be removed from office varying with the profits, and claims for interest in excess of 5 per cent, per annum. Subject to these exceptions all debts proved Where the creditors fail to appoint a trustee, the Board of Trade m the bankruptcy must be paid pari passu. Any surplus after theVreditors!11 aPP01ntment may at any time be superseded payment of 20s. in the pound and interest at the rate of 4 per cent, byRemoval. The trustee may be removed by the creditors at a per annum, from the date of the receiving order, is payable to the e U 11 bankrupt. tlie Bofrd ofT ^ for misconduct, ^ Pul'P08e with reason assigned, or by or for°utincapacity or failure to Proofs of Debt.—All claims and liabilities present or future the Board of Trade certain or contingent, arising out of obligations incurred before the perform his duties, or on either of the other personal grounds of t0 whlcbtbe date of the receiving order are provable in the bankruptcy, an open. But the removal like manner subject toappointment appeal at theis instance of creditors If isa estimate of the liability m the case of contingent debts being made by the trustee subject to appeal to the court. But demands in receiving order is made against a trustee he thereby vacates office. also, with the consent of a general meeting of creditors the nature of unliquidated damages arising otherwise than by He maybut his resignation does not operate as a release from his reason of a contract, promise, or breach of trust, are not provable. resign liability to account for his administration. A secured creditor if he proves must either surrender his security Powers and Duties.—The trustee is required to take immediate or value the security and prove for the balance ; and the trustee can thereupon, subject to the creditor’s power in certain circum- possession of the bankrupt s property, including deeds, books, and accounts, and has the powers of a receiver in the High Court for stances to amend the valuation, take over the security by paying the purpose of enforcing delivery. After payment of the costs of the amount of the valuation, or may require it to be realised He may be required by the creditor to elect which of these courses administration it is his duty to distribute the estate in dividends he will adopt, failing which the equity of redemption will vest as speedily as possible. He may also, and with the sanction of in the creditor. For further regulations as to proofs, the time the committee, or where there is none, with that of the Board of within which they must be lodged for voting and for dividend Trade, cany on the business so far as is necessary to a beneficial and the manner of dealing with them, reference should be made tnr^wfn UI>’ 1 “st?tute or defend legal proceedings, employ a solicipreviously sanctioned by the same authority 1 to the iirst and second schedules of the Act of 1883 and the rules tor to do any business mpromise debts and claims, raise money on mortgage sell connected therewith. Dividends.—Aitov payment of costs of administration and pre- property on credit, or divide the estate where practicable amonoferential debts, it is the duty of the trustee to distribute the estate for t on, but suWt subject Sto any T. directions which be given the t eX1Stm ™- He , may.may without specialbvsancwith all convenient speed,-the first dividend within four months tion dl OTS in g£ era fi St eetln f creditors and 7T 7 ® l meeting, or failing them, by the committee 1 ulwi s 0 J 11 “ Ino S°ien s x subsequent dividends at rty part of 11 for cash SLtbn1 Pr ?iPtbook fny and includingor business and debts, either by public> auction private 1 °I ha If ^ reason i months, the declaration may goodwd be postponedv ?^ for sufficient by the but committee of inspection. Heaty and generally exercise the powers which the bankrupt Notice of the mtention to declare a dividend is gazetted and sent might before adjudication haveall exercised in relation to the propertyy to each creditor mentioned in the bankrupt’s statement of affairs ’ who has not proved. The notice should state the last day for or which are by the Bankruptcy Act conferred on the trustee. proving in order to participate in the distribution, and should be f the pr P ty is beld Sub ect t0 obligatturns ons, such as ^ the_ °payment+° offrent, etc., theJ' trusteeserous may disclaim 1 months iwr “i0-is6 declared, l1?1 tivonotice before the declaration. When the dividend of the amount due, and where the the same, subject m certain cases to the leave of the court, and the disclaimer operates to determine all interest in or liability in 18 S nP^ble, how is sent to each creditor who has proved, with a respect of the property on the part of the estate. The trustee is ™® V “g particulars of the estate. And provision must b required to keep a Record book (which is commenced by the Official ov? n, r1S CrUte !dut0ClT atms aaidildftance ’ wb° have not had time to Receiver), containing minutes of the proceedings in the bankruptcy f0r debts the and a Cash book in the prescribed form, in which all receipts aiul vet detSm- ^ nCredf-lt or ’ who object of claims not 1 f a d dend are entltl } 1 j1 t0 receive ail to prove before the declaration h I1 USt entered> m nieS received milst forthwith beyipaid -T-into ? an ^ account at the AU Bank °of England, entitled befL , f tbeir dividends on proving torthwith S ubsef uent the dkf u f l f dividend is declared, but cannot disturb Acco t hich ™ ’’’ V' ^ under He control of Shut ° - “7 '?ivid Jlld declared. Before dis- the bST^ rP^i sanction of of that department 7nlesf iswhere m special the claim haq h al 0tlfi f-n" 1ud6!ld tbe ^otlce 18 sent to every creditor whose sanction obtained to the circumstances opening of a local within irS ?. ®tba f° trustee, but not finally established, 11 b m n c rcums lnt atlon f. ° ^ tances must estate moffies neriorMi ™ t unless so established within a specified be ^teB ^’trustees h10d le 7lU be excluded from participation in the estate. In quired for f the X purpose of P/^ate account.special When monies rethe estate, cheques or are money b nk up b to received rB ^ d^ t rm the joint creditors are not entitled 18811011 tbe BOai d f d,mde n 1 dmde ^ ' ° ° thelpplication of until all the creditors paid inproperty full. of the bankrupts SeteusTee. Ur separate u out of theare separate V T stee n triSfTf ° Z ™to control -—} , his administration the estate the * ^subject by the committee of inspection, Trustee’s Administration. eondiJed* bV!!teriluPr!f rVf-ti0n and “apagement of the estate is by and P^^rfbe direct supervision of officers appointed Slbl the B ard 0f Trade tbe and distrTu1011 V°.tbe > ultimate realization 1 ass °ts of by the credit" ,b sldes ® devolve upon the trustee appointed p BU meetingf C re dltorS tbe r ® acting as receiver prior to the first operation n f 1 aW ’ the 0ffiei al Receiver also becomes trustee by makin vacates the nm C S.of an order of adjudication. He 8 36 38 certified by thp Bn ^ of% f™ ^ appointed by the creditors, and Tradc creditors’ trusted ^ released, > dying, but again becomes trusteeremoved on the stee being resigning, or being

and is annnf’f . ^he and Board of consist Trade. of The appointedf by the creditors, must not committee more than ye nor less tlmn three creditors, or authorized representatives of creditors. It acts by a majority present at a meeting, and should 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. 1 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