Bankruptcy Regulations 2021

PART 8 - TRUSTEES  

Division 3 - Registered trustee ceasing to be trustee of an estate  

SECTION 52   NOTICE OF REMOVAL OF TRUSTEE OF ESTATE  
Court order that person cease to be trustee

52(1)    
If, on application, the Court makes an order under subsection 90-15(1) of Schedule 2 to the Act that a person (the old trustee ) cease to be the trustee of a regulated debtor ' s estate, the applicant for the order must:

(a)    give a written notice to the Official Receiver that includes the following:

(i) the name of the old trustee;

(ii) the fact that the Court has ordered the old trustee to cease to be the trustee of the estate;

(iii) if the order provides for another person to be appointed as the trustee of the estate - the name of that person;

(iv) the day on which the order takes effect; and

(b)    do so within 2 business days after the day the order is made.

Inspector-General not required to give notice

52(2)    
However, subsection (1) does not apply if the applicant is the Inspector-General.

Removal of trustee by creditors

52(3)    
If the creditors of a regulated debtor, by resolution at a meeting, remove the trustee (the old trustee ) of the regulated debtor ' s estate under paragraph 90-35(1)(a) of Schedule 2 to the Act, the person appointed by the creditors under paragraph 90-35(1)(b) of that Schedule as trustee of the estate must:

(a)    give a written notice to the Official Receiver that includes the following:

(i) the name of the old trustee;

(ii) the fact that the creditors have removed the old trustee;

(iii) the day on which the removal takes effect; and

(b)    do so within 2 business days after the day of the person ' s appointment.

Official Trustee not required to give notice

52(4)    
However, subsection (3) does not apply if the person appointed is the Official Trustee.

Offence

52(5)    
A person commits an offence if:

(a)    the person is required to give notice in accordance with subsection (1) or (3); and

(b)    the person fails to comply with the requirement.

Penalty: 1 penalty unit.

52(6)    
An offence against subsection (5) is an offence of strict liability.