ABSTRACT
The trustee in bankruptcy has the powers conferred by s 314 of the Insolvency Act 1986 which are particularised in Sched 5 to the Act. Part 1 of the Schedule lists the powers which may be exercised with the permission of the creditors’ committee or the court, Part 2 lists the powers for the exercise of which the trustee does not need such permission and Part 3 lists the powers which may be exercised ancillary to any of the powers in Parts 1 or 2. The Part 2 general powers include the power to sell property comprised in the bankrupt’s estate, to give receipts for money which discharge the payer from responsibility and to pursue debts comprised in the estate. The Part 1 powers requiring sanction include the power to continue the bankrupt’s business for its beneficial winding up, the power to litigate as claimant or defendant in relation to the bankrupt estate, the power to raise money by granting security over the property in the bankrupt’s estate, the power to accept postponed payment for property in the estate, the power to exercise rights, options or powers comprised in the estate and the power to enter settlements of claims. The trustee is also given the power,82 with the sanction of the creditors or the court, to appoint the bankrupt to assist in the managing of the estate or the carrying on of a business for the benefit of the creditors.
The trustee will vacate office if the bankruptcy order is annulled or when the administration of the estate is complete and a final meeting of the creditors has been held.84 A trustee in bankruptcy must vacate office if he or she ceases to be qualified to act as such and may also resign on grounds of ill health or where there is some conflict of interest or change of personal circumstances which precludes or makes impracticable the further discharge by him or her of the duties of a trustee.85 A trustee appointed by the Secretary of State may also be removed by the Secretary of State.86 In other circumstances, a trustee in bankruptcy may be removed from office only by an order of the court87 or by a general meeting of the bankrupt’s creditors summoned for that purpose in accordance with the rules.88
