application for removal of trustee of bankrupt estates under s 90-15 and s 45-1 of Insolvency Practice Schedule (Bankruptcy), Schedule 2 to the Bankruptcy Act 1966 (Cth)
first respondent consented to his removal as trustee
conduct of the trustee in administering bankrupt estates was not to the required standard
Quick Take
1The ultimate question on an application to remove a trustee under s 90-15(1) of the Insolvency Practice Schedule (Bankruptcy) is whether removal is in the best interests of the bankruptcy, even where the trustee consents to removal.
2Where a trustee lacks sufficient access to accounts, books and records to properly administer bankrupt estates and has failed to take steps to remedy that situation, the trustee cannot be said to be faithfully performing their duties, warranting removal.
3Even on consent orders for trustee removal, the Court must be independently satisfied on the evidence that the orders are appropriate, given the potential impact on creditors and bankrupts who are not before the Court.
