Termination of office of trustee-bankruptcy, Financial Accounting

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TERMINATION OF OFFICE OF TRUSTEE

The trustee may vacate office in the following ways:

1. Resignation:
He may resign at a meeting of creditors and with their consent.

2. Removal
He may be removed either by the creditors by ordinary resolution, or by the court, if:

  • He is guilty of misconduct or failure to perform his statutory duties;
  • The trusteeship is being needlessly protracted;
  • He is incapable of performing his duties;
  • He is unable to act impartially; or
  • He has been removed from office in another bankruptcy for misconduct.


3. Receiving order:
He automatically vacates office if a receiving order is made against him..

4. Release:
He may be released by the court when the administration of the estate is complete, or he has resigned or been removed.

Upon release he is discharged from liability in respect of any act or default as trustee, unless his release was obtained by fraud or concealment of material facts.

The release must be gazetted and the trustee must deliver to the O.R. all books and papers in his possession.


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