(1)The interim trustee shall call a meeting of creditors Calling of (in this Act referred to as " the statutory meeting ") to be held within 28 days, or such longer period as the sheriff on cause shown may allow, after the date of the award of sequestration.
(2)Not less than 7 days before the date fixed for the statutory meeting, the interim trustee shall notify—
(a)every creditor known to him; and
(b)the Accountancy in Bankruptcy,
of the date, time and place of the meeting, and shall in the notification to creditors invite the submission of such claims as have not already been submitted and inform them of his duties under section 23(3) and (5) of this Act.
(3)The creditors may continue the statutory meeting to a date not later than 7 days after the end of the period—
(a)of 28 days mentioned in subsection (1) above; or (as the case may be),
(b)allowed by the sheriff under that subsection.
(1)For the purposes of voting at the statutory meeting, a creditor shall submit a claim in accordance with this section to the interim trustee at or before the meeting.
(2)A creditor shall submit a claim under this section by producing to the interim trustee—
(a)a statement of claim in the prescribed form ; and
(b)an account or voucher (according to the nature of the debt) which constitutes prima facie evidence of the debt:
Provided that the interim trustee may dispense with any requirement under this subsection in respect of any debt or any class of debt.
(3)Where a creditor neither resides nor has a place of business in the United Kingdom, the interim trustee—
(a)shall, if he knows where the creditor resides or has a place of business and if no notification has been given to that creditor under section 21(2) of this Act, write to him informing him that he may submit a claim under this section;
(b)may allow the creditor to submit an informal claim in writing.
(4)A creditor who has produced a statement of claim in accordance with subsection (2) above may at any time before the statutory meeting produce in place of that statement of claim another such statement of claim specifying a different amount for his claim.
(5)If a creditor produces under this section a statement of claim, account, voucher or other evidence which is false—
(a)the creditor shall be guilty of an offence unless he shows that he neither knew nor had reason to believe that the statement of claim, account, voucher or other evidence was false;
(b)the debtor shall be guilty of an offence if he—
(i)knew or became aware that the statement of claim, account, voucher or other evidence was false ; and
(ii)failed as soon as practicable after acquiring such knowledge to report it to the interim trustee or permanent trustee.
(6)A creditor may, in such circumstances as may be prescribed, state the amount of his claim in foreign currency.
(7)The interim trustee shall, on production of any document to him under this section, initial the document and keep a record of it stating the date when it was produced to him, and, if requested by the sender, shall return it (if it is not a statement of claim) to him.
(8)The submission of a claim under this section shall bar the effect of any enactment or rule of law relating to the limitation of actions in any part of the United Kingdom.
(9)Schedule 1 to this Act shall have effect for determining the amount in respect of which a creditor shall be entitled to claim.
(10)A person convicted of an offence under subsection (5) above shall be liable—
(a)on summary conviction to a fine not exceeding the statutory maximum or—
(i)to imprisonment for a term not exceeding 3 months; or
(ii)if he has previously been convicted of an offence inferring dishonest appropriation of property or an attempt at such appropriation, to imprisonment for a term not exceeding 6 months,
or (in the case of either sub-paragraph) to both such fine and such imprisonment; or
(b)on conviction on indictment to a fine or to imprisonment for a term not exceeding 2 years or to both.
(1)At the commencement of the statutory meeting, the chairman shall be the interim trustee who as chairman shall—
(a)for the purposes of subsection (2) below, accept or reject in whole or in part the claim of each creditor, and, if the amount of a claim is stated in foreign currency, he shall convert that amount into sterling, in such manner as may be prescribed, at the rate of exchange prevailing at the close of business on the date of sequestration;
(b)invite the creditors thereupon to elect one of their number as chairman in his place and shall preside over the election:
Provided that if a chairman is not elected in pursuance of this paragraph, the interim trustee shall remain the chairman throughout the meeting; and
(c)arrange for a record to be made of the proceedings at the meeting.
(2)The acceptance of a claim in whole or in part under subsection (1) above shall, subject to section 24(3) of this Act, determine the entitlement of a creditor to vote at the statutory meeting.
(3)On the conclusion of the proceedings under subsection (1) above, the interim trustee—
(a)shall make the debtor's list of assets and liabilities and the preliminary statement under section 20(1) of this Act available for inspection ;
(b)shall answer to the best of his ability any questions, and shall consider any representations, put to him by the creditors relating to the debtor's assets, business or financial affairs or his conduct in relation thereto ;
(c)shall, after considering any such representations as are mentioned in paragraph (b) above, indicate whether,, in his opinion, the debtor's assets are unlikely to be sufficient as mentioned in section 20(1) of this Act; and
(d)shall prepare (either at or as soon as possible after the statutory meeting), a final statement of the debtor's affairs.
(4)Where the interim trustee has indicated under subsection (3)(c) above that, in his opinion, the debtor's assets are unlikely to be sufficient as mentioned in section 20(1) of this Act, he: shall forthwith make a report of the proceedings at the statutory meeting to the sheriff who shall thereupon appoint the interim trustee as the permanent trustee; and the provisions of this Act shall have effect as regards the sequestration subject to such modifications, and with such further provisions, as are set out in Schedule 2 to this Act.
(5)The interim trustee shall as soon as possible after the statutory meeting send a copy of the statement prepared by him under subsection (3)(d) above, together with an intimation as to whether or not he intends to apply under section 27(1) of this Act for a certificate of discharge, to—
(a)every creditor known to him ; and
(b)the Accountant in Bankruptcy.
(1)Where subsection (4) of section 23 of this Act is not applicable, the creditors shall, at the conclusion of the proceedings under subsection (3) of that section, proceed at the statutory meeting to the election of the permanent trustee.
(2)None of the following persons shall be eligible for election as permanent trustee, nor shall anyone who becomes such a person after having been elected as permanent trustee be qualified to continue to act as permanent trustee—
(a)the debtor;
(b)a person who is not qualified to act as an insolvency practitioner or who, though qualified to act as an insolvency practitioner, is not qualified to act as such in relation to the debtor;
(c)a person who holds an interest opposed to the general interests of the creditors ;
(d)a person who resides outwith the jurisdiction of the Court of Session.
(3)The following persons shall not be entitled to vote in the election of the permanent trustee—
(a)anyone acquiring a debt due by the debtor, otherwise than by succession, after the date of sequestration ;
(b)any creditor to the extent that his debt is a postponed debt.
(4)If no creditor entitled to vote in the election of the permanent trustee attends the statutory meeting or if no permanent trustee is elected, the interim trustee shall forthwith—
(a)so notify the Accountant in Bankruptcy ; and
(b)report the proceedings at the statutory meeting to the sheriff, who shall thereupon appoint the interim trustee as the permanent trustee.
(5)Where subsection (4) above applies, the provisions of this Act shall have effect as regards the sequestration subject to such modifications, and with such further provisions, as are set out in Schedule 2 to this Act.
(1)On the election of the permanent trustee—
(a)the interim trustee shall forthwith make a report of the proceedings at the statutory meeting to the sheriff: and
(b)the debtor, a creditor, the interim trustee, the permanent trustee or the Accountant in Bankruptcy may, within 4 days after the statutory meeting, object to any matter connected with the election; and such objection shall be by summary application to the sheriff, specifying the grounds on which the objection is taken.
(2)If there is no timeous objection under subsection (1)(b) above, the sheriff shall forthwith declare the elected person to be the permanent trustee; and the sheriff shall confirm his election and the sheriff clerk shall issue to him an act and warrant in a form prescribed by the Court of Session by act of sederunt and send a copy of the act and warrant to the Accountant in Bankruptcy.
(3)If there is a timeous objection under subsection (1)(b) above, the sheriff shall forthwith give parties an opportunity to be heard thereon and shall give his decision.
(4)If in his decision under subsection (3) above the sheriff—
(a)rejects the objection, subsection (2) above shall apply as if there had been no timeous objection ;
(b)sustains the objection, he shall order the interim trustee to arrange a new meeting for the election of a permanent trustee; and sections 23 and 24 of this Act and this section shall apply in relation to such a meeting.
(5)Any declaration, confirmation or decision of the sheriff under this section shall be final, and no expense in objecting under this section shall fall on the debtor's estate.
(6)The permanent trustee shall—
(a)insert a copy of the said act and warrant in the sederunt book; and
(b)where he is not the same person as the interim trustee, publish a notice in the Edinburgh Gazette in the prescribed form stating that he has been confirmed in office as permanent trustee.
(1)Where the interim trustee does not himself become the permanent trustee, he shall, on confirmation of the permanent trustee in office, hand over to him everything in his possession which relates to the sequestration (including a copy of the debtor's list of assets and liabilities, of the statement prepared under section 23(3)(d), and of the written comments sent under section 20(2)(c) of this Act) and shall thereupon cease to act in the sequestration.
(2)Within 3 months of the confirmation in office of the permanent trustee, the interim trustee shall—
(a)submit to the Accountant in Bankruptcy—
(i)his accounts of his intromissions (if any) with the debtor's estate; and
(ii)a claim for outlays reasonably incurred, and for remuneration for work reasonably undertaken, by him; and
(b)send to the permanent trustee (unless the interim trustee has himself become the permanent trustee), a copy of what is submitted to the Accountant in Bankruptcy under paragraph (a) above.
(3)On a submission being made to him under subsection (2) above, the Accountant in Bankruptcy—
(a)shall—
(i)audit the accounts; and
(ii)issue a determination fixing the amount of the outlays and remuneration payable to the interim trustee; and
(b)shall send a copy of—•
(i)the said determination to the interim trustee (except where the interim trustee has himself become the permanent trustee); and
(ii)the interim trustee's audited accounts and of the said determination to the permanent trustee, who shall insert the copies in the sederunt book.
(4)The interim trustee, the permanent trustee, the debtor or any creditor may appeal to the sheriff against a determination under subsection (3)(a)(ii) above within 14 days of its issue.
(5)The permanent trustee, on being confirmed in office, shall make such insertions in the sederunt book as are appropriate to provide a record of the sequestration process before his confirmation, but he shall make no insertion therein relating to the written comments made by the interim trustee under section 20(2)(c) of this Act.
(1)On receiving a copy of the Acountant in Bankruptcy's determination sent under subsection (3)(b)(i) of section 26 of this Act the interim trustee may apply to him for a certificate of discharge.
(2)The interim trustee shall send notice of an application under subsection (1) above to the debtor and to the permanent trustee and shall inform the debtor—
(a)that he, the permanent trustee or any creditor may make written representations relating to the application to the Accountant in Bankruptcy within a period of 14 days after such notification;
(b)that the audited accounts of his intromissions (if any) with the debtor's estate are available for inspection at the office of the interim trustee and that a copy of those accounts has been sent to the permanent trustee for insertion in the sederunt book ; and
(c)of the effect mentioned in subsection (5) below.
(3)On the expiry of the period mentioned in subsection (2)(a) above the Accountant in Bankruptcy, after considering any representations duly made to him, shall—
(a)grant or refuse to grant the certificate of discharge ; and
(b)notify (in addition to the interim trustee) the debtor, the permanent trustee, and all creditors who have made such representations, accordingly.
(4)The interim trustee, the permanent trustee, the debtor or any creditor who has made representations under subsection (2)(a) above may, within 14 days after the issuing of the determination under subsection (3) above, appeal therefrom to the sheriff and if the sheriff determines that a certificate of discharge which has been refused should be granted he shall order the Accountant in Bankruptcy to grant it; and the sheriff clerk shall send a copy of the decree of the sheriff to the Accountant in Bankruptcy.
(5)The grant of a certificate of discharge under this section by the Accountant in Bankruptcy shall have the effect of discharging the interim trustee from all liability (other than any liability arising from fraud) to the creditors or to the debtor in respect of any act or omission of the interim trustee in exercising the functions conferred on him by this Act.
(6)Where a certificate of discharge is granted under this section, the permanent trustee shall make an appropriate entry in the sederunt book.
(7)Where the interim trustee has died, resigned office or been removed from office, then once the accounts of his intromissions (if any) with the debtor's estate are or have been submitted to and audited by the Accountant in Bankruptcy, the Accountant in Bankruptcy shall issue a determination fixing the amount of the outlays and remuneration payable to the interim trustee and the provisions of subsection (4) Of section 26 of this Act and the foregoing provisions of this section shall, subject to any necessary modifications, apply in relation to that interim trustee or, if he has died, to his executor as they apply in relation to an interim trustee receiving a copy of such a determination under subsection (3)(b)(i) of that section.