PART 3

Initial stages of sequestration, statutory meeting and trustee vote

Initial stages

Interim preservation of estate
39
1
An interim trustee may, in pursuance of the function conferred by section 53(1), give general or particular directions to the debtor relating to the management of the debtor's estate.
2
In exercising the function so conferred, an interim trustee may—
a
require the debtor to deliver up to the interim trustee—
i
any money or valuables, or
ii
any document relating to the debtor's business or financial affairs,
belonging to, or in the possession of, the debtor or under the debtor's control,
b
place in safe custody anything mentioned in paragraph (a),
c
require the debtor to deliver up to the interim trustee any perishable goods belonging to the debtor or under the debtor's control,
d
arrange for the sale or disposal of such goods,
e
make, or cause to be made, an inventory or valuation of any property belonging to the debtor,
f
require the debtor to implement any transaction entered into by the debtor,
g
effect or maintain insurance policies in respect of the business or property of the debtor, or
h
carry on any business of the debtor or borrow money in so far as it is necessary for the interim trustee to do so to safeguard the debtor's estate.
3
Section 111 applies to an interim trustee as it applies to a trustee.
4
The sheriff, on the application of an interim trustee, may—
a
on cause shown, grant a warrant authorising the interim trustee to enter the house where the debtor resides or the debtor's business premises and to search for and take possession of anything mentioned in subsection (2)(a) or (c) (if need be, by opening shut and lock-fast places), or
b
make such other order to safeguard the debtor's estate as the sheriff thinks appropriate.
5
Where AiB is the interim trustee, the debtor may apply to AiB for a review of a direction under subsection (1) on the ground that the direction is unreasonable.
6
If an application under subsection (5) is made, AiB must—
a
take into account any representations made by an interested person within 21 days beginning with the day on which the application is made, and
b
confirm, amend or revoke the direction (whether or not substituting a new direction) within 28 days beginning with that day.
7
The sheriff may, on an application made by the debtor made within 14 days beginning with the day on which AiB makes a decision under subsection (6)(b)—
a
set aside a direction under subsection (1) or (6)(b) if the sheriff considers the direction to be unreasonable, and
b
in any event, give such directions to the debtor regarding the management of the debtor's estate as the sheriff considers appropriate.
8
The debtor must comply with a direction—
a
under subsection (1) pending a decision by AiB under subsection (6)(b), and
b
under subsection (6)(b) pending the final determination of any appeal (subject to any interim order of the sheriff).
9
Where AiB is not the interim trustee, the sheriff, on an application by the debtor on the grounds that a direction under subsection (1) is unreasonable, may—
a
set aside the direction if the sheriff considers it to be unreasonable, and
b
in any event, give such directions to the debtor regarding the management of the debtor's estate as the sheriff considers appropriate.
10
But, subject to any interim order of the sheriff, the debtor must comply with the direction appealed against pending the final determination of the appeal.
S. 39 in force at 30.11.2016 by S.S.I. 2016/294, reg. 2