F96Statutory meeting of creditors and trustee vote
21 Calling of statutory meeting.
F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F321AF2Calling of statutory meeting
1
2
3
A notice given under subsection (2) above shall—
a
be accompanied by a copy of the F7. . . trustee’s statement of the debtor’s affairs; and
4
Within 7 days of the giving of notice under subsection (2) above, any creditor may request the F7. . . trustee to call the statutory meeting.
5
Where a request or requests under subsection (4) above are made by not less than one quarter in value of the debtor’s creditors, the F7. . . trustee shall call the statutory meeting not later than 28 days, or such other period as the sheriff may on cause shown allow, after the giving of notice under subsection (2) above.
6
Where the F7. . . trustee gives notice under subsection (2) above that he intends to call the statutory meeting, such meeting shall be called not later than 28 days after the giving of such notice.
7
Not less than 7 days before the date fixed for the statutory meeting, the F7. . . trustee shall notify every creditor known to him of the date, time and place of the meeting, and shall in such notice invite the submission of such claims as have not already been submitted and inform them of his duties under section 23(3) of this Act.
8
The creditors may continue the statutory meeting to a date not later than 7 days after the end of the period mentioned in subsection (6) above or such longer period as the sheriff may on cause shown allow.
9
F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21BF10Procedure where no statutory meeting called.
1
Where the F11. . . trustee does not call the statutory meeting and the period mentioned in section 21A(4) of this Act has expired, he shall—
a
b
F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F141A
This section does not apply in any case where the Accountant in Bankruptcy is the trustee.
2
F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C122 Submission of claims for voting purposes at statutory meeting.
1
For the purposes of voting at the statutory meeting, a creditor shall submit a claim in accordance with this section to the F16. . . trustee at or before the meeting.
2
A creditor shall submit a claim under this section by producing to the F16. . . trustee—
a
a statement of claim in the prescribed form; and
b
an account or voucher (according to the nature of the debt) which constitutes prima facie evidence of the debt:
Provided that the F16. . . trustee may dispense with any requirement under this subsection in respect of any debt or any class of debt.
3
Where a creditor neither resides nor has a place of business in the United Kingdom, the F16. . . trustee—
a
shall, if he knows where the creditor resides or has a place of business and if no notification has been given to that creditor under section F1721A(2) of this Act, write to him informing him that he may submit a claim under this section;
b
may allow the creditor to submit an informal claim in writing.
4
A creditor who has produced a statement of claim in accordance with subsection (2) above may at any time before the statutory meeting produce in place of that statement of claim another such statement of claim specifying a different amount for his claim.
C2C35
If a creditor produces under this section a statement of claim, account, voucher or other evidence which is false—
a
the creditor shall be guilty of an offence unless he shows that he neither knew nor had reason to believe that the statement of claim, account, voucher or other evidence was false;
6
A creditor may, in such circumstances as may be prescribed, state the amount of his claim in foreign currency.
7
The F16. . . trustee shall, on production of any document to him under this section, initial the document and keep a record of it stating the date when it was produced to him, and, if requested by the sender, shall return it (if it is not a statement of claim) to him.
C48
The submission of a claim under this section shall bar the effect of any enactment or rule of law relating to the limitation of actions in any part of the United Kingdom.
9
Schedule 1 to this Act shall have effect for determining the amount in respect of which a creditor shall be entitled to claim.
C2C310
A person convicted of an offence under subsection (5) above shall be liable—
a
on summary conviction to a fine not exceeding the statutory maximum or—
i
to imprisonment for a term not exceeding 3 months; or
ii
if he has previously been convicted of an offence inferring dishonest appropriation of property or an attempt at such appropriation, to imprisonment for a term not exceeding 6 months,
or (in the case of either sub-paragraph) to both such fine and such imprisonment; or
b
on conviction on indictment to a fine or to imprisonment for a term not exceeding 2 years or to both.
23F18Proceedings at statutory meeting before trustee vote
1
At the commencement of the statutory meeting, the chairman shall be the F19. . . trustee who as chairman shall—
a
for the purposes of subsection (2) below, accept or reject in whole or in part the claim of each creditor, and, if the amount of a claim is stated in foreign currency, he shall convert that amount into sterling, in such manner as may be prescribed, at the rate of exchange prevailing at the close of business on the date of sequestration;
b
invite the creditors thereupon to elect one of their number as chairman in his place and shall preside over the election:
Provided that if a chairman is not elected in pursuance of this paragraph, the F19. . . trustee shall remain the chairman throughout the meeting; and
c
arrange for a record to be made of the proceedings at the meeting.
2
The acceptance of a claim in whole or in part under subsection (1) above shall, subject to section 24(3) of this Act, determine the entitlement of a creditor to vote at the statutory meeting.
3
On the conclusion of the proceedings under subsection (1) above, the F19. . . trustee—
F20a
shall make available for inspection—
i
the statement of assets and liabilities; and
ii
his statement of the debtor’s affairs prepared under section 20(1) of this Act;
b
shall answer to the best of his ability any questions, and shall consider any representations, put to him by the creditors relating to the debtor’s assets, business or financial affairs or his conduct in relation thereto;
c
shall, after considering any such representations as are mentioned in paragraph (b) above, indicate whether, in his opinion, the debtor’s assets are unlikely to be sufficient as mentioned in section 20(1) of this Act; and
F20d
shall determine whether it is necessary to revise his statement of the debtor’s affairs and, if he determines that it is necessary to revise the statement, he shall do so either at, or as soon as possible after, the statutory meeting.
F214
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F205
Where the F19. . . trustee has revised his statement of the debtor’s affairs, he shall, as soon as possible after the statutory meeting, send a copy of the revised statement to every creditor known to him.
23AF22Summary administration.
F23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24F24Trustee vote
F251
At the statutory meeting, the creditors shall, at the conclusion of the proceedings under section 23(3) of this Act, proceed to F26a vote at which they shall—
a
confirm the appointment of the trustee appointed under section 2 of this Act (referred to in this section and in sections 25 to 27 of this Act as the “original trustee”); or
b
elect another person as the trustee in the sequestration (referred to in this section and in sections 13 and 25 to 29 of this Act as the “replacement trustee”),
such a vote being referred to in this Act as a “trustee vote” .
2
F28None of the following persons shall be eligible for election as F27replacement trustee, nor shall anyone who becomes such a person after having been elected as F27replacement trustee be qualified to continue to act as . . . trustee—
a
the debtor;
b
a person who is not qualified to act as an insolvency practitioner or who, though qualified to act as an insolvency practitioner, is not qualified to act as such in relation to the debtor;
c
a person who holds an interest opposed to the general interests of the creditors;
f
the Accountant in Bankruptcy.
3
The following persons shall not be entitled to vote in the F31trustee vote—
a
anyone acquiring a debt due by the debtor, otherwise than by succession, after the date of sequestration;
b
any creditor to the extent that his debt is a postponed debt.
F303A
In any case where the Accountant in Bankruptcy is the F32original trustee, if—
a
no creditor entitled to vote in the F33trustee vote attends the statutory meeting; or
b
no F34replacement trustee is elected,
the Accountant in Bankruptcy shall forthwith report the proceedings at the statutory meeting to the sheriff and F35shall continue to act as the trustee .
3B
F36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
F30In any case where the Accountant in Bankruptcy is not the F37original trustee, if no creditor entitled to vote in the F38trustee vote attends the statutory meeting or if no F39replacement trustee is elected, the F37original trustee shall forthwith—
a
so notify the Accountant in Bankruptcy; and
b
report the proceedings at the statutory meeting to the sheriff, F40. . . .
F41and he shall continue to act as the trustee.
F304A
F36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
F36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25F42Appointment of replacement trustee
F43A1
This section applies where a replacement trustee is elected by virtue of a trustee vote.
1
On the election of the F44replacement trustee—
a
the F45original trustee shall forthwith make a report of the proceedings at the statutory meeting to the sheriff; and
b
the debtor, a creditor, the F45original trustee, the F44replacement trustee or the Accountant in Bankruptcy may, within 4 days after the statutory meeting, object to any matter connected with the election; and such objection shall be by summary application to the sheriff, specifying the grounds on which the objection is taken.
2
F482A
F49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
If there is a timeous objection under subsection (1)(b) above, the sheriff shall forthwith give parties an opportunity to be heard thereon and shall give his decision.
4
If in his decision under subsection (3) above the sheriff—
a
rejects the objection, subsection (2) above shall apply as if there had been no timeous objection;
5
Any declaration, F52appointment or decision of the sheriff under this section shall be final, and no expense in objecting under this section shall fall on the debtor’s estate.
6
F53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5425A Appointment of permanent trustee in certain cases.
F55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26F56Provisions relating to termination of original trustee's functions
F57A1
This section applies where a replacement trustee is appointed under section 25 of this Act.
1
F58The original trustee, shall, on the appointment of the replacement trustee, hand over to him everything in his possession which relates to the sequestration (including F59the statement of assets and liabilities, and a copy of the statement prepared under section 23(3)(d), and of the written comments sent under section 20(2)(c) of this Act) and shall thereupon cease to act in the sequestration.
2
Within 3 months of the F60appointment of the replacement trustee, the original trustee shall—
a
submit to the Accountant in Bankruptcy—
i
his accounts of his intromissions (if any) with the debtor’s estate; and
ii
a claim for outlays reasonably incurred, and for remuneration for work reasonably undertaken, by him; and
F632A
Where the original trustee was appointed under section 2(5) of this Act as the interim trustee in the sequestration, his accounts and the claim referred to in subsection (2)(a) above shall include accounts and a claim for the period of his appointment as interim trustee.
3
On a submission being made to him under subsection (2) above, the Accountant in Bankruptcy—
a
shall—
i
audit the accounts; and
ii
issue a determination fixing the amount of the outlays and remuneration payable to the F64original trustee; and
4
5
The F71replacement trustee, on being F72appointed , shall make such insertions in the sederunt book as are appropriate to provide a record of the sequestration process before his F73appointment , but he shall make no insertion therein relating to the written comments made by the F74original trustee under section 20(2)(c) of this Act.
F705A
This section does not apply in any case where the Accountant in Bankruptcy is the F75original trustee.
26AF76Accountant in Bankruptcy to account for intromissions.
1
2
The Accountant in Bankruptcy shall, on F79the appointment of the replacement trustee, hand over to the F80replacement trustee everything in his possession which relates to the sequestration and which he obtained in his capacity as F81original trustee (including the statement of assets and liabilities); and thereupon he shall cease to act as F82. . . trustee.
3
The Accountant in Bankruptcy shall, not later than 3 months after the F83appointment of the replacement trustee, supply to the F84replacement trustee—
a
his accounts of his intromissions (if any) as F85original trustee with the debtor’s estate;
b
a determination of his fees and outlays calculated in accordance with regulations made under section 69A of this Act; and
c
a copy of the notice mentioned in subsection (4)(b) below.
4
The Accountant in Bankruptcy shall send to the debtor and to all creditors known to him—
a
a copy of the determination mentioned in subsection (3)(b) above; and
b
a notice in writing stating—
i
that the Accountant in Bankruptcy has commenced the procedure under this Act leading to discharge in respect of his actings as F82. . . trustee;
ii
that the accounts of his intromissions (if any) with the debtor’s estate are available for inspection at such address as the Accountant in Bankruptcy may determine;
iii
that an appeal may be made to the sheriff under subsection (5) below; and
iv
the effect of subsection (7) below.
5
The F86replacement trustee, the debtor and any creditor may appeal to the sheriff against—
a
the determination of the Accountant in Bankruptcy mentioned in subsection (3)(b) above;
b
the discharge of the Accountant in Bankruptcy in respect of his actings as F82. . . trustee; or
c
both such determination and discharge.
6
An appeal under subsection (5) above shall be made not more than 14 days after the issue of the notice mentioned in subsection (4)(b) above; and the decision of the sheriff on such an appeal shall be final.
7
Where—
a
the requirements of this section have been complied with; and
b
no appeal is made to the sheriff under subsection (5) above or such an appeal is made but is refused as regards the discharge of the Accountant in Bankruptcy,
the Accountant in Bankruptcy shall be discharged from all liability (other than any liability arising from fraud) to the creditors or to the debtor in respect of any act or omission of the Accountant in Bankruptcy in exercising the functions of F82. . . trustee in the sequestration.
8
27F90Discharge of original trustee
1
On receiving a copy of the Accountant in Bankruptcy’s determination sent under subsection (3)(b)(i) of section 26 of this Act the F91original trustee may apply to him for a certificate of discharge.
2
The F91original trustee shall send notice of an application under subsection (1) above to the debtor F92, to all creditors known to the original trustee and to the F93replacement trustee and shall inform the debtor—
a
that he, the F93replacement trustee or any creditor may make written representations relating to the application to the Accountant in Bankruptcy within a period of 14 days after such notification;
b
c
of the effect mentioned in subsection (5) below.
3
On the expiry of the period mentioned in subsection (2)(a) above the Accountant in Bankruptcy, after considering any representations duly made to him, shall—
a
grant or refuse to grant the certificate of discharge; and
4
The F91original trustee, the F93replacement trustee, the debtor or any creditor who has made representations under subsection (2)(a) above may, within 14 days after the issuing of the determination under subsection (3) above, appeal therefrom to the sheriff and if the sheriff determines that a certificate of discharge which has been refused should be granted he shall order the Accountant in Bankruptcy to grant it; and the sheriff clerk shall send a copy of the decree of the sheriff to the Accountant in Bankruptcy.
F944A
The decision of the sheriff in an appeal under subsection (4) above shall be final.
5
The grant of a certificate of discharge under this section by the Accountant in Bankruptcy shall have the effect of discharging the F91original trustee from all liability (other than any liability arising from fraud) to the creditors or to the debtor in respect of any act or omission of the F91original trustee in exercising the functions conferred on him by this Act.
6
Where a certificate of discharge is granted under this section, the F93replacement trustee shall make an appropriate entry in the sederunt book.
7
F95. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F947A
This section does not apply in any case where the Accountant in Bankruptcy is the F91original trustee.
Cross-heading preceding s. 21 substituted (S.) (1.4.2008) by virtue of Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 36, 227(3), Sch. 1 para. 19 (with s. 223); S.S.I. 2008/115, art. 3(1)(i) (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))