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Committee of Inspection

creditors, trustee, act, meeting and vacancy

COMMITTEE OF INSPECTION. The per sons appointed by the creditors to superin tend the administration of a bankrupt's property by the trustee. (See TRUSTEE IN BANKRUPTCY.) The provisions of the Bankruptcy Act, 1SS3, are as follow : "Section 22. (1) The creditors, qualified to vote, may at their first or any subsequent meeting, by resolution, appoint from among the creditors, or the holders of general proxies or general powers of attorney from such creditors, a committee of in spection for the purpose of super intending the administration of the bankrupt's property by the trustee. The committee of inspection shall consist of not more than rive nor less than three persons.

" (2) The committee of inspection shall meet at such times as they shall from time to time appoint, and failing such appointment, at least once a month ; and the trustee or any member of the committee may also call a meeting of the committee as and when he thinks necessary.

" (3) The committee may act by a majority of their members present at a meeting, but shall not act unless a majority of the committee are present at the meeting.

(4) Any member of the committee may resign his office by notice in writing signed by him, and delivered to the trustee.

" k3i If a member of the committee be comes bankrupt, or compounds or arranges with his creditors, or is absent from five consecutive meet ings of the committee, his office shall thereupon become vacant. Any member of the committee may be removed by an ordinary resolu tion at any meeting of creditors of which seven days' notice has been given, stating the object of the meeting.

17) On a vacancy occurring in the office of a member of the committee, the trustee shall forthwith summon a meeting of creditors for the purpose of filling the vacancy, and the meet ing may, by resolution, appoint another creditor or other person eligible as above to fill the vacancy.

k5) The continuing members of the com mittee, provided there be not less than two such continuing mem bers, may act notwithstanding any vacancy in their body ; and where the number of members of the com mittee of inspection is for the time being less than five, the creditors may increase that number so that it do not exceed five.

" j9) Ii there be no committee of inspec tion, any act or thing or any direc tion or permission by this Act authorised or required to be done or given by the committee may be done or given by the Board of Trade on the application of the trustee." The Board of Trade may, on application by the committee of inspection, authorise the trustee to have an account with a local bank. (See under TRUSTEE IN BANK RUPTCY.) In connection with the winding up of a company, a committee may be appointed to supervise the liquidation. It shall consist of creditors and contributories of the com pany in such proportions as may be agreed on by the meetings of creditors and contri butories, or as, in case of difference, may he determined by the Court (Section IGO, s.s. 1. of the Companies (Consolidation) Act, 190SJ. Sub-sections 2 to 9, sec above, arc practically to the same effect as sub-sections 2 to 9 of Section 160 of the Companies Act. .See BANKRUPTCY, COMPANIES.)