The trustee in bankruptcy, Financial Accounting

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.
Posted Date: 12/12/2012 6:44:58 AM | Location : United States







Related Discussions:- The trustee in bankruptcy, Assignment Help, Ask Question on The trustee in bankruptcy, Get Answer, Expert's Help, The trustee in bankruptcy Discussions

Write discussion on The trustee in bankruptcy
Your posts are moderated
Related Questions
For this question you will use the dataset "murder.xls", which includes: • rate = Murder rate per 100,000 • convictions = Number of convictions divided by number of murders • execu

A)  A portfolio's daily changes have a standard deviation of $15 million. Suppose the daily changes in the portfolio's value have a first order serial correlation of 0.25. Calculat

Refer to the Consolidated Statements of Shareholders' Equity (pp. 62-63), Consolidated Statements of Cash Flow, including an abstract from Note 2, Cash Flow Information (pp. 61 and

Debra Motors's 14% coupon rate, semiannual payment, $1,000 par value bonds that mature in 20 years are callable 3 years from now at a price of $1,075. The bonds sell at a price of


Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January. Date Face Amount Term Interest Rate 5. Nov. 15 $54,000 60days 6% 6. Dec. 27 $40,500

Q. Availability of fresh issue of equity? A fresh issue of equity finance mayn't be readily available to a listed company or may be available on terms that are unacceptable wit

Information concerning the capital structure of Piper Corporation is as follows: December 31, 2011 2010 Common stock 150,000 shares 150,000 shares Convertible preferred stock 15,00

The Red and Blue partnership has been created to operate a law firm. The partners have been attempting to devise a fair system to allocate profits and losses. Red plans to work mor

Explain the mechanism that states use to prevent the double taxation of the income of a corporation doing business in two or more states.