Bankruptcy Act 1966

SCHEDULE 2 - INSOLVENCY PRACTICE SCHEDULE (BANKRUPTCY)  

Note: See section 4A .

PART 2 - REGISTERING AND DISCIPLINING PRACTITIONERS  

Division 40 - Disciplinary and other action  

Subdivision E - Disciplinary action by committee  

SECTION 40-40   INSPECTOR-GENERAL MAY GIVE A SHOW-CAUSE NOTICE  

40-40(1)    
The Inspector-General may give a registered trustee notice in writing asking the trustee to give the Inspector-General a written explanation why the trustee should continue to be registered, if the Inspector-General believes that:

(a)    the trustee no longer has the qualifications, experience, knowledge and abilities prescribed under paragraph 20-20(4)(a) ; or

(b)    the trustee has committed an act of bankruptcy within the meaning of this Act or a corresponding law of an external Territory or a foreign country; or

(c)    the trustee is disqualified from managing corporations under Part 2D.6 of the Corporations Act 2001 , or under a law of an external Territory or a law of a foreign country; or

(d)    the trustee has ceased to have:

(i) adequate and appropriate professional indemnity insurance; or

(ii) adequate and appropriate fidelity insurance;

against the liabilities that the person may incur working as a registered trustee; or

(e)    the trustee has breached a current condition imposed on the trustee; or

(f)    the trustee has contravened a provision of this Act; or

(g)    the trustee ' s registration as a liquidator under the Corporations Act 2001 has been cancelled or suspended, other than in compliance with a written request by the trustee to cancel or suspend the registration; or

(h)    the trustee owes more than the prescribed amount of notified estate charges; or

(i)    if the Court has made an order under section 90-15 that the trustee repay remuneration - the trustee has failed to repay the remuneration; or

(j)    the trustee has been convicted of an offence involving fraud or dishonesty; or

(k)    the trustee is permanently or temporarily unable to perform the functions and duties of a trustee because of physical or mental incapacity; or

(l)    the trustee has failed to carry out adequately and properly (whether in Australia or in an external Territory or in a foreign country):

(i) the duties of a trustee; or

(ii) any other duties or functions that a registered trustee is required to carry out under a law of the Commonwealth or of a State or Territory, or under the general law; or

(m)    if the trustee is or was the administrator of a debt agreement - the trustee has failed to carry out adequately and properly (whether in Australia or in an external Territory or in a foreign country) the duties of an administrator in relation to a debt agreement; or

(n)    the trustee is not a fit and proper person; or

(o)    the trustee is not resident in Australia or in another prescribed country; or

(p)    the trustee has failed to comply with a standard prescribed for the purposes of subsection (4) .

40-40(2)    
A notice under subsection (1) is not a legislative instrument.

40-40(3)    
Nothing in this section affects the operation of Part VIIC of the Crimes Act 1914 .

Note:

Part VIIC of the Crimes Act 1914 includes provisions that, in certain circumstances, relieve persons from the requirement to disclose spent convictions and require persons aware of such convictions to disregard them.

40-40(4)    
The Insolvency Practice Rules may prescribe standards applicable to the exercise of powers, or the carrying out of duties, of registered trustees.