Appointment of person other than Official Assignee as trustee in bankruptcy
36.—(1) The Court may, in the following circumstances, appoint a person other than the Official Assignee to be the trustee of a bankrupt’s estate:(a)
when making a bankruptcy order, and on the application under subsection (2) of the person who applied for the bankruptcy order;[Act 1 of 2023 wef 01/11/2023]
(b)
at any time after the making of a bankruptcy order that has not been discharged or annulled, and on the application of any creditor, the bankrupt, the Official Assignee or any existing trustee of the bankrupt’s estate.[Act 1 of 2023 wef 01/11/2023]
(2) A person applying for a bankruptcy order must apply to the Court for the appointment of a person other than the Official Assignee to be the trustee of the bankrupt’s estate, unless the Official Assignee has consented to be the trustee of the bankrupt’s estate.[Act 1 of 2023 wef 01/11/2023]
(3) The official name of the trustee is —(a)
“the Trustee of the Estate of (name of bankrupt), a Bankrupt”; or
(b)
“the Trustee in Bankruptcy of (name of bankrupt), a Bankrupt”.
(4) [Deleted by Act 1 of 2023 wef 01/11/2023]
Qualifications for appointment as trustee in bankruptcy
37. A person must not be appointed as a trustee in bankruptcy unless the person satisfies the Court that —(a)
the person is a licensed insolvency practitioner; and
(b)
the person has consented in writing to being appointed as a trustee in bankruptcy.
Person appointed as trustee in bankruptcy to furnish security before acting
38.—(1) A person appointed as a trustee in bankruptcy —(a)
must not commence acting as such trustee until the person has given security in accordance with subsection (2); and
(b)
where the trustee’s security has been forfeited under section 42(8), must not continue acting as such trustee until the person has given fresh security in accordance with subsection (2).
(2) The trustee in bankruptcy must give security in such manner as the Official Assignee may specify, and to the satisfaction of the Official Assignee that the trustee will faithfully perform the trustee’s duties and duly observe all the requirements imposed on the trustee by this Act or any other written law with respect to the performance of the trustee’s duties.
(3) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000.
General functions, duties and powers of trustee in bankruptcy
39.—(1) Subject to subsection (3) and section 42, a trustee in bankruptcy —(a)
has all the functions and duties of the Official Assignee in relation to the conduct of the bankrupt in question and the administration of the bankrupt’s estate as provided in this Act; and
(b)
may exercise all or any of the powers of the Official Assignee in relation to the bankrupt and the bankrupt’s estate.
(2) Unless the context otherwise requires, any reference in this Act to the Official Assignee includes a reference to a trustee in bankruptcy.
(3) Sections 20, 25, 34(3) and (4), 334, 358, 379, 382, 384, 393, 395, 403 and 436 do not apply to a trustee in bankruptcy, and section 378(a), (c), (f), (h) and (i) does not apply to a trustee in bankruptcy except with the consent of the Court, the creditors’ committee or, if there is no creditors’ committee, the Official Assignee.
Trustee in bankruptcy to pay moneys received into prescribed bank account
40.—(1) Every trustee in bankruptcy must, in the manner and at the times prescribed by regulations, pay all moneys received as trustee into such bank account as is prescribed by those regulations or as may be specified by the Court.
(2) Any trustee in bankruptcy who pays any moneys received as trustee into any bank account other than the bank account prescribed or specified under subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 12 months or to both.
Remuneration of trustee in bankruptcy
41.—(1) A trustee in bankruptcy is entitled to receive such salary or remuneration as is determined in the following manner:(a)
by agreement between the trustee in bankruptcy and the creditors’ committee, if any;
(b)
where there is no agreement with the creditors’ committee or where there is no such committee —(i)
by a special resolution of the creditors whose debts have been admitted for the purpose of voting and who are present (in person or by proxy) and voting at a meeting to be convened by the trustee by a notice to each creditor in accordance with subsection (2); or
(ii)
by agreement between the trustee in bankruptcy and all the creditors;[Act 1 of 2023 wef 01/11/2023]
(c)
where there is no determination in the manner mentioned in paragraph (a) or (b), by the Court.
(2) The trustee in bankruptcy must attach to every notice under subsection (1)(b) a statement of all receipts and expenditure by the trustee and the amount of remuneration sought by the trustee.
(3) In this section, “special resolution” has the meaning given by section 273(1).
(4) For the purposes of subsection (1)(b)(ii), a creditor is deemed to have agreed with the trustee in bankruptcy if —(a)
the trustee has notified the creditor in the prescribed manner of the remuneration sought by the trustee; and
(b)
the creditor has not objected to the remuneration sought by the trustee in the prescribed manner and within the prescribed time.[Act 1 of 2023 wef 01/11/2023]
Control of trustee in bankruptcy by Official Assignee
42.—(1) The Official Assignee is to take cognizance of the conduct of a trustee in bankruptcy in the administration of the estate of a bankrupt.
(2) If the trustee in bankruptcy does not faithfully perform the trustee’s duties or duly observe all the requirements imposed on the trustee by this Act or any other written law with respect to the performance of the trustee’s duties, or if any complaint is made to the Official Assignee by any creditor or bankrupt in relation to the trustee’s conduct in the administration of the estate, the Official Assignee must inquire into the matter and take such action on the matter as the Official Assignee thinks expedient.
(3) The Official Assignee may —(a)
at any time require the trustee in bankruptcy to answer any inquiry in relation to the trustee’s administration of the estate of a bankrupt; and
(b)
direct an investigation to be made of the books and vouchers of the trustee.
(4) It is the duty of the trustee in bankruptcy —(a)
to furnish the Official Assignee with such information;
(b)
to produce to the Official Assignee, and permit inspection by the Official Assignee of, such books, papers and other records; and
(c)
to give the Official Assignee such other assistance,
as the Official Assignee may reasonably require for the purpose of enabling the Official Assignee to carry out the Official Assignee’s functions in relation to the bankruptcy.
(5) The Official Assignee may, having regard to the results of any inquiry or investigation made under this section, apply to the Court for the removal of the trustee in bankruptcy.
(6) The Official Assignee may forfeit the security furnished by the trustee in bankruptcy under section 38 if —(a)
the trustee fails to comply with section 332(9) or 339(1) as it applies to the trustee;
(b)
the trustee fails to submit the report of the administration of the bankruptcy in accordance with section 344; or
(c)
the trustee fails to perform any other duty, or to duly observe any other requirement imposed on the trustee by this Act (other than as mentioned in paragraph (a) or (b)) or any other written law with respect to the performance of the trustee’s duties.
(7) The Official Assignee must not forfeit any security until the Official Assignee has given the trustee in bankruptcy concerned an opportunity to show cause why the security furnished by the trustee under section 38 should not be forfeited.
(8) If, after giving the trustee an opportunity to show cause, the Official Assignee is satisfied that the trustee in bankruptcy had no reasonable excuse for the failure mentioned in subsection (6)(a) or (b), the Official Assignee must forfeit all or part of the security furnished by the trustee under section 38.
(9) In determining whether to forfeit any, all or part of the security furnished by the trustee in bankruptcy under section 38, the Official Assignee is to have regard to the circumstances surrounding the trustee’s failure mentioned in subsection (6)(a) or (b) (including whether the trustee had a reasonable excuse for the failure), and to any mitigating circumstances.
Review by Court of trustee in bankruptcy’s act, omission or decision
43.—(1) The Official Assignee, a bankrupt, any creditor of the bankrupt, or any other person, who is dissatisfied with any act, omission or decision of a trustee in bankruptcy in relation to the trustee’s administration of the bankrupt’s estate, may apply to the Court to review such act, omission or decision, and on hearing such an application the Court may —(a)
confirm, reverse or modify any act or decision of the trustee; or
(b)
give such directions to the trustee or make such other order as the Court thinks fit.
(2) A trustee in bankruptcy may apply to the Court for directions in relation to any particular matter arising under the bankruptcy.
Removal of trustee in bankruptcy
44.—(1) A trustee in bankruptcy may be removed from office only by an order of the Court or by a general meeting of the bankrupt’s creditors summoned especially for that purpose in accordance with the regulations.
(2) A trustee in bankruptcy vacates that office if the trustee in bankruptcy ceases to be a licensed insolvency practitioner.
(3) Subject to subsection (4), a trustee in bankruptcy may resign from that office —(a)
by giving 2 months’ notice of the trustee’s resignation to the Court and the Official Assignee; and
(b)
by filing an application to the Court for the appointment of the Official Assignee or another person to act as trustee of the bankrupt’s estate.
(4) A trustee in bankruptcy cannot resign from that office unless the trustee —(a)
has submitted to the Official Assignee a report on the work done in relation to the bankrupt’s estate, containing such particulars as may be prescribed;
(b)
has nominated to act as trustee of the bankrupt’s estate —(i)
another person who consents to act as trustee; or
(ii)
the Official Assignee, if the Official Assignee consents in writing to the appointment; and
(c)
has given the bankrupt’s creditors notice of the trustee’s intention to resign and of the identity of the person nominated under paragraph (b).
(5) A trustee in bankruptcy vacates that office if the bankruptcy order is annulled.
(6) A trustee in bankruptcy must, not later than 2 months after vacating that office under subsection (2) or such further period as the Official Assignee may allow, submit to the Official Assignee a report on the work done in relation to the bankrupt’s estate, containing such particulars as may be prescribed.
(7) A trustee in bankruptcy who, without reasonable excuse, fails to comply with subsection (6) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000.
Vacancy in office of trustee in bankruptcy
45. Where the appointment of any person as trustee in bankruptcy fails to take effect, or where a vacancy arises in the office of a trustee in bankruptcy whose appointment has taken effect, the Official Assignee —(a)
is to act as the trustee of the bankrupt’s estate until the vacancy is filled; and
(b)
may summon a general meeting of the bankrupt’s creditors for the purpose of filling the vacancy.
Liability of trustee in bankruptcy
46.—(1) Where —(a)
a trustee in bankruptcy has misapplied or retained, or become accountable for, any money or other property comprised in the bankrupt’s estate; or
(b)
the estate of a bankrupt has suffered any loss in consequence of any misfeasance or breach of fiduciary or other duty by a trustee in bankruptcy in the carrying out of the trustee’s functions,
the Official Assignee, the bankrupt or any creditor of the bankrupt may apply to the Court for any order specified in subsection (2).
(2) Upon hearing an application made under subsection (1), the Court may, for the benefit of the estate, order the trustee in bankruptcy to —(a)
repay, restore or account for any money or other property (together with interest at such rate as the Court may think just); or
(b)
pay such sum by way of compensation in respect of the misfeasance or breach of fiduciary or other duty as the Court may think just.
(3) Any order made by the Court under subsection (2) is without prejudice to any liability on the part of the trustee in bankruptcy arising apart from this section.
(4) Where a trustee in bankruptcy seizes or disposes of any property that is not comprised in the bankrupt’s estate, and at the time of the seizure or disposal the trustee believes, and has reasonable grounds for believing, that the trustee is entitled (whether pursuant to an order of the Court or otherwise) to seize or dispose of that property, the trustee —(a)
is not liable to any person (whether under this section or otherwise) in respect of any loss or damage resulting from the seizure or disposal, except insofar as the loss or damage is caused by the negligence of the trustee; and
(b)
has a lien on the property or the proceeds of its sale for such of the expenses of the bankruptcy as were incurred in connection with the seizure or disposal.
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
