Right of indemnity-renumeration of trustee, Financial Accounting

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Right of indemnity

If the Official Receiver or trustee has seized or disposed of any property in the possession of the debtor, without notice or claim relating thereto, he is not personally liable to any person having a claim against that property, unless the court is of opinion that he has been negligent.

Renumeration of trustee

This is fixed by ordinary resolution of the creditors, or by the committee of inspection. It takes the form of a commission payable partly on the amount realised by him less sums paid to secured creditors, and partly on the amount distributed as dividend. The court may fix the amount at the request of one-fourth in number or value of the creditors or of the bankrupt, if satisfied that the agreed amount is too large. If the trustee receives any other payment he loses all right to remuneration.


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