Bankruptcy (Scotland) Act 2016

55 Removal, resignation etc. of interim trustee

(1) This section applies where—

(a) an interim trustee is appointed under section 54(1), and

(b) the petition for sequestration has not been determined.

(2) Where, under section 200(4) the sheriff removes an interim trustee from office the sheriff must, on the application of AiB, appoint a new interim trustee.

(3) Without prejudice to that section or to subsection (2), where the sheriff is satisfied—

(a) that the interim trustee is unable to act—

(i) for a reason mentioned in subsection (4), or

(ii) by, under or by virtue of any other provision of this Act, or

(b) that the interim trustee’s conduct has been such that the interim trustee should no longer continue to act in the sequestration,

then, on the application of the debtor, a creditor or AiB, the sheriff must remove the interim trustee from office and appoint a new interim trustee.

(4) The reasons are—

(a) that the interim trustee is incapable (within the meaning of section 1(6) of the Adults with Incapacity (Scotland) Act 2000), or

(b) that the interim trustee has some incapacity by virtue of which the interim trustee is unable to act as interim trustee.

(5) An interim trustee (not being AiB) may apply to the sheriff for authority to resign office; and if the sheriff is, in respect of the applicant, satisfied as is mentioned in subsection (3), the sheriff must grant the application.

(6) Where, following an application under subsection (5) the interim trustee resigns office, the sheriff must appoint a new interim trustee.

(7) Where the interim trustee dies, the sheriff must, on the application of the debtor, a creditor or AiB, appoint a new interim trustee.

(8) A person (other than AiB) may not be appointed to act as interim trustee in a sequestration if the person is ineligible, by virtue of section 49(3), for election as a replacement trustee.

(9) An interim trustee who, by virtue of subsection (8), is prohibited from acting as such must forthwith make an application under subsection (5).

(10) Subsections (1) to (3) of section 51 apply as regards the appointment of an interim trustee under this section as if, for any reference—

(a) to the sheriff awarding sequestration of the debtor’s estate, there were substituted a reference to the sheriff appointing a new interim trustee, and

(b) to the petition for sequestration, there were substituted a reference to the application under this section for the appointment of a new interim trustee.