Bankruptcy Amendment Regulations 2003 (No. 1) (76 of 2003)

Schedule 1   Amendments

[9]   After regulation 9.01

insert

9.02 Information to be included in debt agreement proposal

A debt agreement proposal must:

(a) mention the costs and fees that are to be charged for the administration of the debt agreement; and

(b) include a schedule setting out when the costs and fees are to be taken.

9.03 Administrator's fee to be paid according to work done

(1) Payments of costs and fees for the administration of a debt agreement may be taken in accordance with the schedule mentioned in regulation 9.02 as administration of the debt agreement is progressively performed.

(2) Costs and fees must not be taken in advance of work actually performed.

9.04 Persons ineligible to be debt agreement administrator

(1) A person is ineligible to act as an administrator if the person:

(a) is an undischarged bankrupt or insolvent under administration, or became a party (as debtor) to a debt agreement or a Part X administration within the 3 years before the proposed appointment; or

(b) is a person whose registration ceases, under section 155I of the Act, for a reason mentioned in paragraph 155H (1) (a), (b), (e) or (f) of the Act, or whose registration has ceased for any of those reasons within 10 years before the proposed appointment; or

(c) is a person who is prohibited, under the Corporations Act, from taking part in the management of a corporation; or

(d) is a person who is deregistered under the Corporations Act as a liquidator; or

(e) is a person who is convicted of a criminal offence involving fraud or dishonesty, or was so convicted within 10 years before the proposed appointment; or

(f) is a person who the Inspector-General determines under subregulation 9.06 (3) has failed to properly carry out duties or cooperate with an inquiry or investigation, or in relation to whom such a decision was made within 3 years before the proposed appointment.

(2) If a person is ineligible to act as an administrator, any company of which the person is a director is also ineligible to act as an administrator.

(3) Paragraph (1) (a) does not apply to a person nominated as administrator of a debt agreement proposal in respect of which that person is the sole debtor.

9.05 Official Trustee to administer agreement

If an administrator of a debt agreement becomes ineligible to administer the agreement then, unless and until the debtor appoints an administrator who is eligible to so act, the Official Trustee must administer the agreement.

9.06 Duties of administrator

(1) In addition to other duties imposed by the Act, an administrator of a debt agreement must:

(a) keep accounts, books and records that are necessary to give a full and correct account of the administration of the debt agreement; and

(b) make those accounts, books and records available, on request, for inspection by the Inspector-General; and

(c) if ordered to do so by the Inspector-General, answer any inquiries about a debt agreement; and

(d) cooperate with any inquiry or investigation by the Inspector-General under paragraph 12 (1) (bb) of the Act; and

(e) deal with property in the manner specified in the debt agreement.

(2) If the Inspector-General forms an opinion that an administrator may have failed to properly carry out duties or cooperate with an inquiry or investigation mentioned in subregulation (1), the Inspector-General must:

(a) by written notice, tell the administrator; and

(b) invite the administrator to respond within 28 days, or such longer time as is specified in the notice.

(3) After the expiry of the time mentioned in paragraph (2) (b), the Inspector-General may, having regard to the response of the administrator (if any), determine whether or not the administrator has failed to properly carry out duties or cooperate with an inquiry or investigation.

(4) If the Inspector-General determines that the administrator has failed to properly carry out duties or cooperate with an inquiry or investigation, the Inspector-General must give the administrator a written notice of the determination, setting out the reasons.

9.07 Review by Tribunal of decisions under subregulation 9.06 (3)

Application may be made to the Administrative Appeals Tribunal for a review of a determination of the Inspector-General under subregulation 9.06 (3).