The trustee in bankruptcy, Financial Accounting

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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.

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