MRL3701 - STUDY UNIT 13 - Election of the Trustee Questions with Correct Answers

ELECTION AND APPOINTMENT Correct Answer At first meeting of creditors, creditors who have proved their claims may elect one or two trustees. IF MORE THAN ONE PERSON IS NOMINATED Correct Answer individual who obtains a majority votes in both number and value must be elected as sole trustee IF ONE PERSON OBTAINS A MAJORITY IN VALUE AND ANOTHER PERSON A MAJORITY IN NUMBER Correct Answer Both must be elected trustees However if either party declines a joint trusteeship the other must be elected sole trustee SHOULD ONE PERSON OBTAIN A MAJORITY OF VOTES IN NUMBER AND NO OTHER PERSON OBTAINS A MAJORITY IN VALUE OR VICE VERCA Correct Answer The party who obtains the majority must be elected as sole trustee Where a trustee is elected at a meeting not presided over by the Master his election is not valid until confirmed by the Master. APPOINTMENT Correct Answer Master is only official with power to appoint the trustee of a sequestrated estate. Judge is not empowered to make such and appointment. Master may refuse to accept as trustee the person whom the creditors have elected Master must, once the person has given satisfactory security for the proper performance of his duties as trustee, confirm his election and appoint his as trustee by delivering to him a certificate of appointment. Trustee must give notice of his appointment and his address in the Gazette. REFUSAL TO APPOINT Correct Answer Master may refuse to confirm the election of a person elected as trustee, or to appoint him as such if: 1. he was not properly elected 2. he is disqualified from being a trustee 3. he has failed to give the required security 4. in the opinion of the Master, he should not be appointed as trustee to the estate in question.