Trustee in

TRUSTEE IN trustee in bankruptcy is some person (generally a practising public accountant) who is appointed. to repre sent the creditors of a bankrupt, and to get in and realise the bankrupt's assets and distribute them among the creditors. He acts under the super vision of the Bankruptcy Court of the Board of Trade.

Appointment.—The creditors in a bankruptcy are entitled, if they think lit, to appoint more than one person td the office of trustee ; but when more than one are so appointed it must be specified by the creditors whether any act required or authorised by the Bankruptcy Acts to be done by the " trustee " is to be done by all or any more of such persons. The term " trustee" in the Acts includes such a number of trustees, who are expressly declared to be joint-tenants of the property of the bankrupt. The creditors have also the right to appoint persons to act as trustees in succession in the event of one or more of the persons first named declining to accept office, or failing to give security, or not being approved by the Board of Trade. No one can act as a trustee in bankruptcy who has been previously removed from a like office for misconduct or neglect of duty. A trustee's official name is " the trustee of the property of A. B., a bankrupt." In this name he may sue and be sued ; and he may also, in any part of the 13ritish Dominions or elsewhere, hold property of every description, make contracts, enter into any engagements binding on himself and his successors in office, and do all other acts necessary or expedient to be done in the execution of his office. Remuneration.—The remuneration (if any) of a trustee in bankruptcy should be fixed by an ordinary resolution of the creditors, or, if the creditors so resolve, by the Committee of Inspection. It is bound to be in the nature of a connnission or percentage, of which one part must be payable on the amount realised by the trustee only, after deducting any sums paid to secured creditors out of the proceeds of their securities, and the other part on the amount distributed in dividend. If one-fourth in number or value of the creditors dissent from the resolution, the Board of Trade fixes the amount of the remuneration. And so will it if satisfied by the bankrupt that the remuneration is unnecessarily large. It should be noted that the resolution fixing the remuneration must state what expenses the remuneration is to cover ; no liability can then attach to the bankrupt's estate, or, to the creditors, in respect of any of the expenses of the trustee which the remunera tion is stated to cover. Where a trustee acts without remuneration he is

entitled to be allowed out of the bankrupt's estate such proper expenses incurred by him in or about the proceedings of the bankruptcy as the creditors, with the sanction of the Board of Trade, may approve. He must not, under any circumstances whatever, make any arrangement for or accept from the bankrupt, or any solicitor, auctioneer, or any other person that may be employed about a bankruptcy, any gift, remuneration, or pecuniary or other consideration or benefit whatever beyond the remuneration fixed by the creditors and payable out of the estate ; nor may he make any arrangement for giving up, or give up, any part of his remuneration, either as receiver, matager, or trustee to the bankrupt, or any solicitor or other person that may be employed about a bankruptcy. Cost8.—Where a trustee or manager receives remuneration for his services as such no pay ment will be allowed in his accounts in respect of the performance by any other person of the ordinary duties which are required by statute or rules to be performed by himself. Where he is a solicitor he may contract that the remuneration for his services as a trustee shall include all profes sional services. Before employing solicitors, managers, accountants, brokers, and other persons to render him any assistance a trustee must obtain a sufficient sanction, except in cases of urgency, though in such cases it must be shown that no undue delay took place in obtaining the sanction. And all bills and charges of such persons, not being trustees, are taxed by tne prescribed officer, no payments in respect thereof being allowed in the trustee's accounts without proof of such taxation having been made. The taxing master always requires to be satisfied, before he passes such bills and charges, that the employment of all persons concerned, in respect of the particular matters out of which the charges arise, have been duly sanctioned. Any such person so employed is bound, on request by the trustee, to deliver his bill to the proper officer for taxation, and the trustee must make this request in sufficient time before declaring a dividend. If a person having a bill of costs fails to duly deliver it within seven days after receipt of the request, or such further time as the Court on application may grant, the tru,,tee must declare and distribute the dividend without regard to any claim by him, and thereupon any such claim is forfeited against both the trustee personally and the estate of the bankrupt.