Summary
Summary Law of insolvency: About the Trustee of an insolvent estate
- Course
- Law of insolvency
- Institution
- University Of The Western Cape (UWC)
Comprehensive notes summarised from the Hockley's Insolvency Textbook
[Show more]
Content preview
Topic 9: The Trustee1. Election and appointment
S40(1) of Insolvency Act
- Master must give notice to creditors to attend the first meeting of creditors
At first meeting
- Creditors must prove their claims against estate
- Must elect trustee
Election of trustee
- Governed by s54 of IA
S54(1) of Insolvency Act
- Creditors who have proved their claims against estate
o May elect 1 or 2 trustees by voting
S54(2): Person who must be elected as trustee
- Person who obtains majority in number and majority in value of the votes
S54(4): Defines these terms
Majority of the votes in number refers to
o Greatest number of votes
Majority of the votes in value
o Refers to votes representing claims of the greatest combined value
S54(3)(a): If none of nominated parties obtains such a majority of votes
Who will be elected as trustee then? Can be either
- Person who obtains the majority of votes in number
o when no other person obtains the majority of votes in value
- person who obtains he majority of votes in value
o when no other person obtains majority of votes in number
s54(3)(b): Both must be elected as trustees if
- X obtains a majority of votes in number
- Y obtains majority of votes in value
S56(1): Election will not be valid if
- Trustee elected at meeting of creditors where the Master did not preside
Election can be validated if
- Master confirms such election
- Confirmation will amount to official appointment as trustee
S56(2): Master must confirm election if
- Person elected gives Master the required security for the proper performance of his duties as trustee
- Confirmation will amount to official appointment as trustee
o He will then receive a certificate of appointment from Master
S56(3): Upon receiving this certificate
- Trustee must make public notification of his appointment in Government Gazette
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Jennica1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R50,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
50843 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now