Administration of bankruptcy
2F2F1Appointment and functions of the trustee in the sequestration
1
Where the F3sheriff awards sequestration of the debtor’s estate and the petition for the sequestration—
a
nominates a person to be F4the trustee;
b
states that the person satisfies the conditions mentioned in subsection (3) below; and
c
has annexed to it a copy of the undertaking mentioned in subsection (3)(c) below,
F51A
Subject to subsection (1C) below, where the Accountant in Bankruptcy awards sequestration of the debtor's estate and the debtor application—
a
nominates a person to be the trustee;
b
states that the person satisfies the conditions mentioned in subsection (3) below; and
c
has annexed to it a copy of the undertaking mentioned in subsection (3)(c) below,
the Accountant in Bankruptcy may, if it appears to him that the person satisfies those conditions, appoint that person to be the trustee in the sequestration.
1B
Where the Accountant in Bankruptcy awards sequestration of the debtor's estate and does not appoint a person to be the trustee in pursuance of subsection (1A) above, the Accountant in Bankruptcy shall be deemed to be appointed to be the trustee in the sequestration.
1C
Where—
a
the debtor application is made by a debtor to whom section 5(2B)(c)(ia) applies; and
b
the Accountant in Bankruptcy awards sequestration of the debtor's estate,
the Accountant in Bankruptcy shall be deemed to be appointed as trustee in the sequestration.
2
Where the F3sheriff awards sequestration of the debtor’s estate and—
b
no interim trustee has been appointed in pursuance of subsection (5) below,
F82A
Where the sheriff awards sequestration of the debtor's estate and an interim trustee has been appointed in pursuance of subsection (5) below, the sheriff may appoint—
a
the interim trustee; or
b
subject to subsection (2B) below, such other person as may be nominated by the petitioner,
to be the trustee in the sequestration.
2B
A person nominated under subsection (2A)(b) above may be appointed to be the trustee in the sequestration only if—
a
it appears to the sheriff that the person satisfies the conditions mentioned in subsection (3) below; and
b
a copy of the undertaking mentioned in subsection (3)(c) below has been lodged with the sheriff.
2C
Where the sheriff does not appoint a person to be trustee in pursuance of subsection (2A) above, the sheriff shall appoint the Accountant in Bankruptcy to be the trustee in the sequestration.
3
The conditions referred to in subsection (1) above are that the person—
a
F9. . .
b
is qualified to act as an insolvency practitioner; and
c
has given an undertaking, in writing, that he will actF10 as the trustee in the sequestration .
4
F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Where a petition for sequestration is presented by a creditor or a trustee acting under a trust deed, the F3sheriff may appoint an interim trustee before sequestration is awarded—
a
if the debtor consents; or
b
if the trustee acting under the trust deed or any creditor shows cause.
6
For the purposes of the appointment of an interim trustee under subsection (5) above—
a
where a person is nominated as mentioned in subsection (1)(a) above and the provisions of that subsection apply, the F3sheriff may appoint that person; and
b
where such a person is not appointed, the F3sheriff shall appoint the Accountant in Bankruptcy.
F126A
The interim trustee's general function shall be to safeguard the debtor's estate pending the determination of the petition for sequestration.
6B
Whether or not the interim trustee is still acting in the sequestration, the interim trustee shall supply the Accountant in Bankruptcy with such information as the Accountant in Bankruptcy considers necessary to enable him to discharge his functions under this Act.
7
Where
F13a
a trustee is appointed in a sequestration where the petition was presented by a creditor or the trustee acting under a trust deed; or
b
an interim trustee is appointed in pursuance of subsection (5) above,
he shall, as soon as practicable, notify the debtor of his appointment.