Committee of inspection-bankruptcy, Financial Accounting

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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.


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