- Y Diweddaraf sydd Ar Gael (Diwygiedig)
- Pwynt Penodol mewn Amser (19/12/2018)
- Gwreiddiol (Fel y'i Deddfwyd)
Version Superseded: 23/07/2019
Point in time view as at 19/12/2018.
Insolvency Act 1986, Cross Heading: Tenure of office as trustee is up to date with all changes known to be in force on or before 16 August 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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(1)On the making of a bankruptcy order the official receiver becomes trustee of the bankrupt's estate, unless the court appoints another person under subsection (2).
(2)If when the order is made there is a supervisor of a voluntary arrangement approved in relation to the bankrupt under Part 8, the court may on making the order appoint the supervisor of the arrangement as the trustee.
(3)Where a person becomes trustee of a bankrupt's estate under this section, the person must give notice of that fact to the bankrupt's creditors (or, if the court so allows, advertise it in accordance with the court's directions).
(4)A notice or advertisement given by a trustee appointed under subsection (2) must explain the procedure for establishing a creditors' committee under section 301.]
Textual Amendments
F1S. 291A inserted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), ss. 133(1), 164(1); S.I. 2016/1020, reg. 4(f)
[F3(1)This section applies to any appointment of a person (other than the official receiver) as trustee of a bankrupt's estate.]
(2)No person may be appointed as trustee of a bankrupt’s estate unless he is, at the time of the appointment, qualified to act as an insolvency practitioner in relation to the bankrupt.
(3)Any power to appoint a person as trustee of a bankrupt’s estate includes power to appoint two or more persons as joint trustees; but such an appointment must make provision as to the circumstances in which the trustees must act together and the circumstances in which one or more of them may act for the others.
(4)The appointment of any person as trustee takes effect only if that person accepts the appointment in accordance with the rules. Subject to this, the appointment of any person as trustee takes effect at the time specified in his certificate of appointment.
F4(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F2S. 292 heading substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 5(2); S.I. 2016/1020, reg. 4(f)
F3S. 292(1) substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 5(3); S.I. 2016/1020, reg. 4(f)
F4S. 292(5) omitted (6.4.2017 for E.W.) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 5(4); S.I. 2016/1020, reg. 4(f)
Modifications etc. (not altering text)
C1S. 292 applied (with modifications) by S.I. 1986/1999, art. 3, Sch. 1 Pt. II (as amended (6.4.2016) by The Enterprise and Regulatory Reform Act 2013 (Consequential Amendments) (Bankruptcy) and the Small Business, Enterprise and Employment Act 2015 (Consequential Amendments) Regulations 2016 (S.I. 2016/481), reg. 1, Sch. 2 para. 2(7)(c))
C2S. 292 applied (with modifications) (1.12.1994) by S.I. 1994/2421, arts. 8(3)(9), 10(6), Sch. 4 Pt. II para. 26
C3S. 292 modified (1.12.1994) by S.I. 1994/2421, art. 11(2)(3), Sch. 7 para. 10
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F5Ss. 293-295 omitted (6.4.2017 for E.W.) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 6; S.I. 2016/1020, reg. 4(f)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F5Ss. 293-295 omitted (6.4.2017 for E.W.) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 6; S.I. 2016/1020, reg. 4(f)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F5Ss. 293-295 omitted (6.4.2017 for E.W.) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 6; S.I. 2016/1020, reg. 4(f)
(1)At any time when the official receiver is the trustee of a bankrupt’s estate by virtue of any provision of this Chapter F6... he may apply to the Secretary of State for the appointment of a person as trustee instead of the official receiver.
(2)On an application under subsection (1) the Secretary of State shall either make an appointment or decline to make one.
(3)Such an application may be made notwithstanding that the Secretary of State has declined to make an appointment either on a previous application under subsection (1) F7... or under section 300(4) below.
(4)Where the trustee of a bankrupt’s estate has been appointed by the Secretary of State (whether under this section or otherwise), the trustee shall give notice to the bankrupt’s creditors of his appointment or, if the court so allows, shall advertise his appointment in accordance with the court’s directions.
(5)In that notice or advertisement the trustee shall [F8explain the procedure for establishing a creditors' committee under section 301.]
Textual Amendments
F6Words in s. 296(1) omitted (6.4.2017 for E.W.) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 7(a); S.I. 2016/1020, reg. 4(f)
F7Words in s. 296(3) omitted (6.4.2017 for E.W.) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 7(b); S.I. 2016/1020, reg. 4(f)
F8Words in s. 296(5) substituted for s. 296(5)(a)(b) (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 76; S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
Modifications etc. (not altering text)
C4S. 296 applied (with modifications) by S.I. 1986/1999, art. 3, Sch. 1 Pt. II (as amended (6.4.2016) by The Enterprise and Regulatory Reform Act 2013 (Consequential Amendments) (Bankruptcy) and the Small Business, Enterprise and Employment Act 2015 (Consequential Amendments) Regulations 2016 (S.I. 2016/481), reg. 1, Sch. 2 para. 2(7)(c))
C5S. 296 applied (with modifications) (1.12.1994) by S.I. 1994/2421, art. 8(3)(9), Sch. 4 Pt. II para. 12
C6S. 296 modified (1.12.1994) by S.I. 1994/2421, art. 11(2)(3), Sch. 7 para. 13
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F9S. 297 omitted (6.4.2017 for E.W.) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 8; S.I. 2016/1020, reg. 4(f)
(1)Subject as follows, the trustee of a bankrupt’s estate may be removed from office only by an order of the court or by a [F10decision of the bankrupt's creditors made by a creditors' decision procedure instigated] specially for that purpose in accordance with the rules.
F11(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)Where the official receiver is trustee by virtue of [F13section 291A(1)] or a trustee is appointed by the Secretary of State or (otherwise than under [F14section 291A(2)]) by the court, a [F15creditors' decision procedure may be instigated] for the purpose of [F16removing] the trustee only if—
(a)the trustee thinks fit, or
(b)the court so directs, or
(c)F17... one of the bankrupt’s creditors [F18so requests,] with the concurrence of not less than one-quarter, in value, of the creditors (including the creditor making the request).
[F19(4A)Where the bankrupt's creditors decide to remove a trustee, they may in accordance with the rules appoint another person as trustee in his place.
(4B)Where the decision to remove a trustee is made under subsection (4), the decision does not take effect until the bankrupt's creditors appoint another person as trustee in his place.]
(5)If the trustee was appointed by the Secretary of State, he may be removed by a direction of the Secretary of State.
(6)The trustee (not being the official receiver) shall vacate office if he ceases to be a person who is for the time being qualified to act as an insolvency practitioner in relation to the bankrupt.
(7)The trustee may, in the prescribed circumstances, resign his office by giving notice of his resignation to the [F20prescribed person].
(8)The trustee shall vacate office on giving notice to the [F20prescribed person] that [F21the trustee has given notice under section 331(2).]
[F22(8A)A notice under subsection (8)—
(a)must not be given before the end of the period prescribed by the rules as the period within which the bankrupt's creditors may object to the trustee's release, and
(b)must state whether any of the bankrupt's creditors objected to the trustee's release.]
(9)The trustee shall vacate office if the bankruptcy order is annulled.
Textual Amendments
F10Words in s. 298(1) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 77(2); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
F11S. 298(2) omitted (6.4.2017 for E.W.) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 9(2); S.I. 2016/1020, reg. 4(f)
F12S. 298(3) repealed (1.4.2004) by 2002 c. 40, ss. 269, 278, 279, Sch. 23 para. 10, Sch. 26 (with s. 249(6)); S.I. 2003/2093, art. 2(2), Sch. 2 (subject to arts. 3-8 (as amended by S.I. 2003/2332, art. 2))
F13Words in s. 298(4) substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 9(3)(a); S.I. 2016/1020, reg. 4(f)
F14Words in s. 298(4) substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 9(3)(b); S.I. 2016/1020, reg. 4(f)
F15Words in s. 298(4) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 77(3)(a); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
F16Word in s. 298(4) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 77(3)(b); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
F17Words in s. 298(4)(c) omitted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 77(3)(c)(i); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
F18Words in s. 298(4)(c) inserted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 77(3)(c)(ii); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
F19S. 298(4A)(4B) inserted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 77(4); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
F20Words in s. 298(7)(8) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 23; S.I. 2016/191, art. 2 (with art. 3)
F21Words in s. 298(8) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 77(5); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
F22S. 298(8A) inserted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 77(6); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
Modifications etc. (not altering text)
C7Ss. 298–307 applied (with modifications) by S.I. 1986/1999, art. 3, Sch. 1 Pt. II (as amended (6.4.2016) by The Enterprise and Regulatory Reform Act 2013 (Consequential Amendments) (Bankruptcy) and the Small Business, Enterprise and Employment Act 2015 (Consequential Amendments) Regulations 2016 (S.I. 2016/481), reg. 1, Sch. 2 para. 2(7)(c))
C8S. 298 modified (1.12.1994) by S.I. 1994/2421, art. 11(2)(3), Sch. 7 para. 15 (as amended (8.12.2017) by The Insolvency (Miscellaneous Amendments) Regulations 2017 (S.I. 2017/1119), reg. 1(1), Sch. 2 para. 7(3))
(1)Where the official receiver has ceased to be the trustee of a bankrupt’s estate and a person is appointed in his stead, the official receiver shall have his release with effect from the following time, that is to say—
(a)where that person is appointed by F23... the bankrupt’s creditors or by the Secretary of State, the time at which the official receiver gives notice [F24under this paragraph to the prescribed person] that he has been replaced, and
(b)where that person is appointed by the court, such time as the court may determine.
(2)If the official receiver while he is the trustee gives notice to the Secretary of State that the administration of the bankrupt’s estate in accordance with Chapter IV of this Part is for practical purposes complete, he shall have his release with effect from such time as the Secretary of State may determine.
(3)A person other than the official receiver who has ceased to be the trustee shall have his release with effect from the following time, that is to say—
(a)in the [F25following cases], the time at which notice is given to the [F26prescribed person] in accordance with the rules that that person has ceased to hold office [F27—
(i)the person has been removed from office by a decision of the bankrupt's creditors and the creditors have not decided against his release,
(ii)the person has died;]
[F28(b)in the following cases, such time as the Secretary of State may, on an application by the person, determine—
(i)the person has been removed from office by a decision of the bankrupt's creditors and the creditors have decided against his release,
(ii)the person has been removed from office by the court or by the Secretary of State,
(iii)the person has vacated office under section 298(6);]
(c)in the case of a person who has resigned, such time as may be prescribed;
(d)in the case of a person who has vacated office under section 298(8)—
[F29(i)if any of the bankrupt's creditors objected to the person's release before the end of the period for so objecting prescribed by the rules, such time as the Secretary of State may, on an application by that person, determine, and
(ii)otherwise, the time at which the person vacated office.]
[F30(3A)Where the person is removed from office by a decision of the bankrupt's creditors, any decision of the bankrupt's creditors as to whether the person should have his release must be made by a creditors' decision procedure.]
(4)Where a bankruptcy order is annulled, the trustee at the time of the annulment has his release with effect from such time as the court may determine.
(5)Where the offical receiver or the trustee has his release under this section, he shall, with effect from the time specified in the preceeding provisions of this section, be discharged from all liability both in respect of acts or omissions of his in the administration of the estate and otherwise in relation to his conduct as trustee.
But nothing in this section prevents the exercise, in relation to a person who has had his release under this section, of the court’s powers under section 304.
Textual Amendments
F23Words in s. 299(1)(a) omitted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 78(2); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
F24Words in s. 299(1)(a) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 24(2); S.I. 2016/191, art. 2 (with art. 3)
F25Words in s. 299(3)(a) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 78(3)(a); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
F26Words in s. 299(3)(a) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 24(3); S.I. 2016/191, art. 2 (with art. 3)
F27Words in s. 299(3)(a) inserted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 78(3)(b); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
F28S. 299(3)(b) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 78(4); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
F29S. 299(3)(d)(i)(ii) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 78(5); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
F30S. 299(3A) inserted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 78(6); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
Modifications etc. (not altering text)
C9Ss. 298–307 applied (with modifications) by S.I. 1986/1999, art. 3, Sch. 1 Pt. II (as amended (6.4.2016) by The Enterprise and Regulatory Reform Act 2013 (Consequential Amendments) (Bankruptcy) and the Small Business, Enterprise and Employment Act 2015 (Consequential Amendments) Regulations 2016 (S.I. 2016/481), reg. 1, Sch. 2 para. 2(7)(c))
C10S. 299 applied (with modifications) (1.12.1994) by S.I. 1994/2421, arts. 8(3)(9), 10(6), Sch. 4 Pt. II para. 22
C11S. 299 modified (1.12.1994) by S.I. 1994/2421, art. 11(2)(3), Sch. 7 para. 16
(1)This section applies where the appointment of any person as trustee of a bankrupt’s estate fails to take effect or, such an appointment having taken effect, there is otherwise a vacancy in the office of trustee.
(2)The official receiver shall be trustee until the vacancy is filled.
[F31(3)The official receiver may ask the bankrupt's creditors to appoint a person as trustee, and must do so if so requested by not less than one tenth in value of the bankrupt's creditors.
(3A)If the official receiver makes such a request the bankrupt's creditors may in accordance with the rules appoint a person as trustee.]
(4)If at the end of the period of 28 days beginning with the day on which the vacancy first came to the offical receiver’s attention he has not [F32asked, and is not proposing to ask, the bankrupt's creditors to appoint a person as trustee], he shall refer the need for an appointment to the Secretary of State.
F33(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)On a reference to the Secretary of State under subsection (4) F34. . . the Secretary of State shall either make an appointment or decline to make one.
(7)If on a reference under subsection (4) F34. . . no appointment is made, the official receiver shall continue to be trustee of the bankrupt’s estate, but without prejudice to his power to make a further reference.
(8)References in this section to a vacancy include a case where it is necessary, in relation to any property which is or may be comprised in a bankrupt’s estate, to revive the trusteeship of that estate after the [F35vacation of office by the trustee under section 298(8)] or the giving by the official receiver of notice under section 299(2).
Textual Amendments
F31S. 300(3)(3A) substituted for s. 300(3) (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 79(2); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
F32Words in s. 300(4) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 79(3); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
F33S. 300(5) repealed (1.4.2004) by 2002 c. 40, ss. 269, 278, 279, Sch. 23 para. 11(a), Sch. 26 (with s. 249(6)); S.I. 2003/2093, art. 2(2), Sch. 2 (subject to arts. 3-8 (as amended by S.I. 2003/2332, art. 2))
F34Words in s. 300(6)(7) repealed (1.4.2004) by 2002 c. 40, ss. 269, 278, 279, Sch. 23 para. 11(b), Sch. 26 (with s. 249(6)); S.I. 2003/2093, art. 2(2), Sch. 2 (subject to arts. 3-8 (as amended by S.I. 2003/2332, art. 2))
F35Words in s. 300(8) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 79(4); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
Modifications etc. (not altering text)
C12Ss. 298-307 applied (with modifications) by S.I. 1986/1999, art. 3, Sch. 1 Pt. II (as amended (6.4.2016) by The Enterprise and Regulatory Reform Act 2013 (Consequential Amendments) (Bankruptcy) and the Small Business, Enterprise and Employment Act 2015 (Consequential Amendments) Regulations 2016 (S.I. 2016/481), reg. 1, Sch. 2 para. 2(7)(c))
C13S. 300 applied (with modifications) (1.12.1994) by S.I. 1994/2421, art. 8(3)(9), Sch. 4 Pt. II para. 12
C14S. 300 modified (1.12.1994) by S.I. 1994/2421, art. 11(2)(3), Sch. 7 para. 17
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