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
State the term Reliability- Accounting Information Accounting must be free from significant error or bias. It must be capable of being relied upon by managers to represent

Q. Limitations of the five year period of analysis? A number of restrictions to the analysis potentially arise - The approach doesn't take account of future benefits/costs a

Here is the income statement for Belding, Inc. BELDING Inc. Income statement for the year ended December 31, 2012 Sales $400,000 costs of goods sold 250,000 gross profit 150,000 ex

A company that uses the perpetual inventory system purchased $8,500 worth of inventory on September 25. Terms of the purchase were 2/10, n/30. The invoice was paid in full on Octob

Define reasons that influence a firm's degree of transaction exposure? What reasons influence a firm's degree of ‘transaction exposure' in a certain currency? For each reason d

Acquisition during the financial period The holding company may acquire the subsidiary company partway through the financial period such that as at the balance sheet date, the

Q. Estimate the systematic risk of the new investment? The beta of the comparator company will be utilized to estimate the systematic risk of the new investment. No un-gearing

Q. Calculate infant mortality rate? Mid year population 440000 Late fatal death          29 No. of live birth           5200 No. of infant death      423 No. of mate

Q. Show the Basis of weightings? (i) Both costs of capital (Ke and Kd) as well as the WACC have been calculated using current   ex-dividend (ex-interest) market values rather t

The comparative balance sheet of Portable Luggage Company at December 31, 2008 and 2007, is as follows An examination of the income statement and the accounting records revealed th