Bankruptcy Act 1966

The creditors may:

by resolution at a meeting, remove the trustee of a regulated debtor’s estate; and

by resolution at the same or a subsequent meeting, appoint another person as trustee of the regulated debtor’s estate.

For the general rules relating to meetings, see Division 75.

However, the creditors may not do so unless at least 5 business days’ notice of the meeting is given to all persons who are entitled to receive notice of creditors’ meetings.

A person (the former trustee) who has been removed as trustee of the regulated debtor’s estate by resolution of the creditors may apply to the Court to be reappointed as trustee of the regulated debtor’s estate.

If the former trustee makes such an application, the former trustee must:

record all costs incurred by the former trustee and the debtor’s estate in relation to the application; and

do so in a way that separates those costs from the costs incurred by the former trustee and the regulated debtor’s estate in relation to other matters.

The Court may order that the former trustee be reappointed as trustee of the regulated debtor’s estate if the Court is satisfied that the removal of the former trustee was an improper use of the powers of one or more creditors.

The Court may make such other orders in relation to the application as it thinks fit, including orders in relation to:

the costs of the application; and

the remuneration of the former trustee.