Bankruptcy Act 1966

The Court may make such orders as it thinks fit in relation to the administration of a regulated debtor’s estate.

The Court may exercise the power under subsection (1):

on its own initiative, during proceedings before the Court; or

on application under section 90‑20.

Without limiting subsection (1), those orders may include any one or more of the following:

an order determining any question arising in the administration of the estate;

an order that a person cease to be the trustee of the estate;

an order that another person be appointed as the trustee of the estate;

an order in relation to the costs of an action (including court action) taken by the trustee of the estate or another person in relation to the administration of the estate;

an order in relation to any loss that the estate has sustained because of a breach of duty by the trustee;

an order in relation to remuneration, including an order requiring a person to repay to the estate of a regulated debtor, or the creditors of a regulated debtor, remuneration paid to the person as trustee.

Without limiting the matters which the Court may take into account when making orders, the Court may take into account:

whether the trustee has faithfully performed, or is faithfully performing, the trustee’s duties; and

whether an action or failure to act by the trustee is in compliance with this Act and the Insolvency Practice Rules; and

whether an action or failure to act by the trustee is in compliance with an order of the Court; and

whether the regulated debtor’s estate or any person has suffered, or is likely to suffer, loss or damage because of an action or failure to act by the trustee; and

the seriousness of the consequences of any action or failure to act by the trustee, including the effect of that action or failure to act on public confidence in registered trustees as a group.

Without limiting subsection (1), an order mentioned in paragraph (3)(d) in relation to the costs of an action may include an order that:

the trustee or another person is personally liable for some or all of those costs; and

the trustee or another person is not entitled to be reimbursed by the regulated debtor’s estate or creditors in relation to some or all of those costs.

Without limiting subsection (1), an order mentioned in paragraph (3)(e) in relation to a loss may include an order that:

the trustee is personally liable to make good some or all of the loss; and

the trustee is not entitled to be reimbursed by the regulated debtor’s estate or creditors in relation to the amount made good.

This section does not limit the Court’s powers under any other provision of this Act, or under any other law.