Bankruptcy Legislation Amendment Act 2004 (80 of 2004)

Schedule 2   Amendments relating to compositions and schemes of arrangement

Bankruptcy Act 1966

6   After section 73A

Insert:

73B Declaration of relationships by proposed trustee of composition or scheme of arrangement

(1) This section applies if the proposal provides that a person (the proposed trustee ) other than the trustee of the bankrupt's estate is to become the trustee of the composition or scheme of arrangement.

(2) The proposed trustee must make a written declaration stating whether the bankrupt is a related entity of:

(a) the proposed trustee; or

(b) a related entity of the proposed trustee.

(3) The proposed trustee must:

(a) give a copy of the declaration to the Official Receiver; and

(b) give a copy of the declaration to the trustee of the bankrupt's estate; and

(c) keep a copy of the declaration.

(4) The trustee of the bankrupt's estate must give a copy of the declaration to each of the creditors at the same time as the trustee gives a copy of the subsection 73(2) report to each creditor.

73C Statement of affairs and declarations of relationships to be tabled at meeting

Scope

(1) This section applies to a meeting that is called under section 73.

Bankrupt's statement of affairs

(2) The trustee must table at the meeting a copy of the bankrupt's statement of affairs.

(3) If:

(a) the bankrupt had been required, immediately before the start of the meeting, to prepare a statement of affairs; and

(b) that statement would have differed in one or more material respects from the statement a copy of which was tabled under subsection (2);

the bankrupt must table at the meeting a written statement identifying those differences.

Proposed trustee's declaration

(4) If the proposal provides that a person (the proposed trustee ) other than the trustee of the bankrupt's estate is to become the trustee of the composition or scheme of arrangement, the trustee of the bankrupt's estate must table at the meeting a copy of the declaration made by the proposed trustee under subsection 73B(2).

(5) If:

(a) the proposal provides that a person (the proposed trustee ) other than the trustee of the bankrupt's estate is to become the trustee of the composition or scheme of arrangement; and

(b) assuming that the proposed trustee had been required, immediately before the start of the meeting, to make a declaration stating whether the bankrupt is a related entity of:

(i) the proposed trustee; or

(ii) a related entity of the proposed trustee;

that declaration would have differed in one or more material respects from the declaration made by the proposed trustee under subsection 73B(2);

the proposed trustee must table at the meeting a written statement identifying those differences.