Bankruptcy (Scotland) Act 2016

70 Removal of trustee other than where trustee is unable to act or should no longer continue to act: general

(1) The trustee in the sequestration (in this section and in sections 71 to 73 referred to as “T”) may be removed from office—

(a) by the creditors at a meeting called for the purpose if they also forthwith elect a new trustee, or

(b) by order made by AiB if AiB is satisfied that, on the basis of circumstances other than those mentioned in section 72(2), there are reasons to remove T from office.

(2) An order removing T in accordance with subsection (1)(b) may be made—

(a) on the application of—

(i) the commissioners, or

(ii) a person representing not less than ¼ in value of the creditors, or

(b) in any other case where AiB is satisfied as mentioned in that subsection.

(3) “Creditors”, in subsection (1)(a), does not include—

(a) anyone who, other than by succession, acquires after the date of sequestration a debt due by the debtor, or

(b) any creditor to the extent that the creditor’s debt is a postponed debt.

(4) AiB must—

(a) order any application by a person mentioned in subsection (2)(a) to be served on T,

(b) enter particulars of the application in the register of insolvencies, and

(c) before deciding whether or not to make an order under subsection (1)(b), give T the opportunity to make representations.

(5) AiB may—

(a) in ordering, or

(b) instead of ordering,

the removal of T from office under subsection (1)(b), make such further or other order as AiB thinks fit.

(6) This section and sections 71 to 75 do not apply where AiB is the trustee in the sequestration.

(7) This section is without prejudice to section 200(4).