BANKRUPTCY ACT 1966

SCHEDULE 2 - INSOLVENCY PRACTICE SCHEDULE (BANKRUPTCY)  

Note: See section 4A .

PART 3 - GENERAL RULES RELATING TO ESTATE ADMINISTRATIONS  

Division 90 - Review of the administration of a regulated debtor ' s estate  

Subdivision D - Removal by creditors  

SECTION 90-35   REMOVAL BY CREDITORS   Creditors may remove trustee and appoint another

90-35(1)  
The creditors may:


(a) by resolution at a meeting, remove the trustee of a regulated debtor ' s estate; and


(b) by resolution at the same or a subsequent meeting, appoint another person as trustee of the regulated debtor ' s estate.

Note:

For the general rules relating to meetings, see Division 75 .

90-35(2)  
However, the creditors may not do so unless at least 5 business days ' notice of the meeting is given to all persons who are entitled to receive notice of creditors ' meetings. Former trustee may apply to Court to be reappointed

90-35(3)  
A person (the former trustee ) who has been removed as trustee of the regulated debtor ' s estate by resolution of the creditors may apply to the Court to be reappointed as trustee of the regulated debtor ' s estate.

90-35(4)  
If the former trustee makes such an application, the former trustee must:


(a) record all costs incurred by the former trustee and the debtor ' s estate in relation to the application; and


(b) do so in a way that separates those costs from the costs incurred by the former trustee and the regulated debtor ' s estate in relation to other matters.

90-35(5)  
The Court may order that the former trustee be reappointed as trustee of the regulated debtor ' s estate if the Court is satisfied that the removal of the former trustee was an improper use of the powers of one or more creditors.

90-35(6)  
The Court may make such other orders in relation to the application as it thinks fit, including orders in relation to:


(a) the costs of the application; and


(b) the remuneration of the former trustee.




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