The duties of the committee are, as we have already seen, to superintend the administration by the trustee of the debtor's estate. To do this, it may give directions to the trustee, who must follow them, and in certain cases the trustee cannot act in any way without the permission of the committee ; it should require, once in every three months at least, the production by the trustee of his cash-book, audit it, and give a certificate of such audit; it must hold a meeting at least once a month, and attend any meeting thereof which a single member may take upon himself to summon. The committee acts by a majority of its members present in meeting, but cannot act unless such a majority is present. Its acts may be reviewed by the creditors in general meeting; as also, if necessary, by the official receiver and the Board.
of Trade. No member may make any profit, directly or indirectly, out of any transaction incidental to the bankruptcy ; nor may he, except by leave of the Court, directly or indirectly become the purchaser of any part of the estate.
The public examination of the debtor is held by the Court as soon as possible after the expiration of the time for the submission of the debtor's statement of affairs. Notice of the time and place is given to all the creditors and to the debtor ; the latter being liable to arrest if,he should fail to attend. At the examination, which will be in open Court, the whole of the debtor's conduct, dealings, and property will be rigorously inquired into ; this being the time when any discrepancies in the debtor's statement of affairs, and his answers on an earlier occasion to the questions put to him by the official receiver, will be publicly gone into in the light afforded by the independent investigations of the official receiver and the trustee. The debtor must disclose all his affairs. He will be examined upon oath, and may be questioned by the Court, the official receiver, the trustee, by any creditor who has delivered a proof, and by any such creditor's representative duly authorised in writing. All questions which are allowed by the Court to be put must be answered by the debtor—he cannot claim privilege ; answers to them must be given, even if they tend to incriminate him ; the answers will be taken down in writing and afterwards read over to the debtor, who must sign them ; and these may be read by his creditors at all reasonable times. In the case of frauds by agents, bankers, or factors, it is provided that a statement or admission made by any person, in any com pulsory examination before a Court in any bankruptcy matter, shall not be admissible as evidence against thatperson in any proceedings in respect of such frauds. When the Court is of opinion that the debtor's affairs have
been sufficiently investigated, the public examination may be concluded ; but this will not be done until after the day appointed for the first meeting of creditors, or even until such meeting has been held. Until the conclusion of the public examination, the debtor cannot apply for his discharge ; nor will the Court approve of any proposal for a composition or for a scheme of arrangement. Should the debtor fail to disclose his affairs, or to attend the public examination, or any adjournment thereof, no good cause being shown for such failure, the Court may adjourn the examination sine die. If the affairs of the.debtor do not make his arrest worth while, his penalty for such failure is the consequent inability to obtain his discharge or other advantages obtainable after the conclusion of the public examination. And should he at any time afterwards desire to get through with his examination, he will probably have to personally pay the expenses of the notice thereof to the creditors and of the gazetting.
Adjudication of the time of making a receiving order, or at any time thereafter, the Court may, on the application of the debtor himself, adjudge him bankrupt. Such application may be made orally and without notice. But where creditors apply for an adjudication, certain conditions must be fulfilled. A debtor will then, after a receiving order has been made, be adjudged bankrupt is any of the following circumstances—(a) when a quorum of creditors do not attend at the time and place appointed for the first meeting, or one adjournment thereof; (b) where the official receiver satisfies the Court that the debtor has absconded, or that the debtor does not intend to propose a composition or scheme ; or (c) where a com position or scheme is not accepted by the creditors at the first meeting, or one adjournment thereof; or (d) where the public examination of the debtor is adjourned sine die, and the debtor has not previously been adjudged bankrupt ; or (e) where the debtor has made default in payment of any instalment in pursuance of a composition or scheme. Notice of the adjudica tion is advertised and gazetted in like manner to the receiving order. The effect of the adjudication is to cause all the property of the debtor to vest in the official receiver or trustee, and to become divisible amongst his creditors.