Duties.—As a general rule a trustee should pay all money he receives into the Bankruptcy Estates Account at the Bank of England. But if it appears to the committee of inspection that for the purpose of carrying on the debtor's business, or of obtaining advances, or because of the probable amount of the cash balance, the Board of Trade will, upon the application of the committee, authorise the trustee to make his payments into ancrout of some local bank selected by the committee. And the Board of Trade will also authorise this if the committee satisfies it that for any other reason it is for the advantage of the creditors that the trustee should have an account at a local bank. Such a local account must be opened and kept by the trustee in the name of the debtor's estate ; and any interest receivable in respect of the account is part of the assets of the estate. If a trustee at any Ulna retains for more than ten days a sum exceeding ,e5o, or such other sum as the Board of Trade in any particular case authorise him to retain, then, unless he explains the retention to the satisfaction of the Board, he must pay interest on the amount so retained at the rate of 20 per cent. per annum, and will have no claim for remuneration, and may be removed from the Board of Trade, and will be liable to pay any expenses occasioned by his default. He must not, under any circumstances, pay any sums received by him into his private banking account.
There is also a necessity for an audit of his accounts. Every trustee must, at such times as may be prescribed, but not less than twice in each year during his tenure of office, send to the Board of Trade, or as they direct, an account of his receipts and payments as such trustee. The account should be in the prescribed form, made in duplicate, and verifierby a statutory declaration. It is audited by the Board of Trade, and for this purpose the trustee must furnish the Board with such vouchers and information as may be required, and the Board may at any time require the production of and inspect any books of account kept by the trustee. When audited, a copy of the account is filed and kept by the Board, and the other copy is filed with the Court, and each copy is open to the inspection of any creditor, or of the bankrupt, or of any person interested.
Whenever so required by a creditor the trustee must furnish and transmit to him by post a list of the creditors, showing in such list the amount of the debt due to such creditors. For such list the trustee is entitled to charge the sum of 3d. per folio of seventy-two words, together with the cost of postage. And any creditor, with the concurrence of one-sixth of the creditors (including himself), may at any time call upon the trustee to furnish and transmit to the creditors a statement of accounts ; but the person at whose instance the accounts are furnished must deposit with the trustee a sum sufficient to pay the costs of furnishing and transmitting the accounts, such sum to be repaid to him out of the estate if the creditors or the Court so direct. And so also any creditor, with the concurrence of one-sixth in value of the creditors (including himself), may at any time request the trustee to call a meeting of the creditors; and the trustee must thereupon call a meet ing accordingly within fourteen days. But here again the person at whose instance the meeting is summoned must deposit with the trustee a sum sufficient to pay the costs of summoning the meeting, such sum to be repaid to him out of the estate if the creditors or Court so direct.
A trustee is also required to keep proper books of accounts in the manlier prescribed. In these he must enter minutes of proceedings at meetings, and of such other matters as may be prescribed ; and any creditor of the bankrupt may, subject to the control of the Court, personally or by his agent inspect any such books. An annual statement of proceedings should also be furnished by the trustee. He must from time to time, as may be prescribed, and not less than once in every year during the continuance of the bankruptcy, transmit to the Board of Trade a statement showing the proceedings in bankruptcy up to the date of the statement, containing the prescribed particulars and made out in the prescribed form. The Board examines these statements, and will call the trustee to account for any misfeasance, neglect, or omission which may appear therein or in his accounts or otherwise, and may require him to make good any loss which the estate may have sustained by the misfeasance, neglect, or omission.
The vote of the trustee, or of his partner, clerk, solicitor, or solicitor's clerk, either as creditor or proxy for a creditor, is not reckoned in the majority required for passing any resolution affecting the remuneration or conduct of the trustee.
Control over trustee.—A trustee, in the administration of the property of the bankrupt, and in the distribution thereof amongst his creditors, must have regard to any directions that may be given by resolution of the creditors at any general meeting, or by the committee of inspection. Directions so given by the creditors at a general meeting override, in case of conflict, any directions given by the committee of inspection. For the purpose of ascer taining the Wishes of the creditors the trustee may at any time summon general meetings of them ; and it is his duty to summon such meetings at the times the creditors, by resolution either at the meeting appointing the trustee or otherwise may direct, or whenever requested to do so by a sufficient number of creditors. The trustee has also the right to apply to the Court for directions in relation to any particular matter arising under the bankruptcy. But, subject to the provisions of the Bankruptcy Acts, the trustee must use his own discretion in the management of the estate and its distribution among the creditors. There is, however, an appeal against the decisions of a trustee. If the bankrupt or any of the creditors, or any other person, is aggrieved by any act or decision of the trustee, he may apply to the Court, and the Court may confirm, reverse, or modify the act or decision complained of, and make such order as it thinks just. And the Board of Trade takes cognizance of the conduct of trustees. It will make an inquiry, and take action in the event of a trustee not faithfully performing his duties, and duly observing all the requirements imposed on him by statute, rules, or otherwise with respect to the performance of his duties, or in the event of any complaint being made to the Board by any creditor in regard thereto. The Board has power at any time to require a trustee to answer any inquiry made by them in relation to any bankruptcy in which the trustee is en gaged, and may, if it thinks fit, apply to the Court to examine on oath the trustee or any other person concerning the bankruptcy. It may also direct a local investigation to be made of the books and vouchers of the trustee.