BANKRUPTCY ACT 1966

SCHEDULE 2 - INSOLVENCY PRACTICE SCHEDULE (BANKRUPTCY)  

Note: See section 4A .

PART 3 - GENERAL RULES RELATING TO ESTATE ADMINISTRATIONS  

Division 80 - Committees of inspection  

SECTION 80-1   SIMPLIFIED OUTLINE OF THIS DIVISION  

Creditors of a regulated debtor ' s estate may decide that there is to be a committee of inspection to monitor the administration of the estate and to give assistance to the trustee.

Appointing the committee

Each of the following have rights to appoint members to the committee (and to remove those members and fill the vacancy):

  • (a) the creditors by resolution;
  • (b) a single creditor who is owed, or a group of creditors who together are owed, a large amount;
  • (c) a single employee who is owed, or a group of employees who together are owed, a large amount.
  • Once a person exercises a right in one capacity to appoint a member, the person cannot exercise a right in another capacity to do so. A person can exercise the right in a particular capacity to appoint only one person (unless the person is filling a vacancy in that appointment).

    Procedures and powers

    This Division also deals with the procedures and powers of committees of inspection (including directing that information, documents and reports be provided by the trustee and obtaining specialist advice).

    The trustee of a regulated debtor ' s estate must have regard to directions of the committee but is not obliged to comply.

    Review

    The Court may inquire into and make orders about the conduct of committees of inspection.




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