(ii) That his trusteeship is being needlessly protracted without probable advantage to the creditors, or

(iii) That by reason of lunacy or continued sickness or absence he is incapable of performing his duties, or

(iv) That his connection with or relation to the bankrupt or his estate, or any particular creditor, might make it difficult for him to act impartially.

(v) Where in any other matter he has been removed from office for misconduct, the Board may remove him from the trusteeship; but, if the creditors by ordinary resolution disapprove of the removal, he or they may appeal to the High Court.

(vi) If he fails to keep up his security.

(3) If a receiving order is made against him.

(4) When he has become functus officio, that is, has fulfilled his functions as trustee, by reason of the estate being wound up or some scheme of arrangement having been accepted by the creditors.

(5) If he has been released, without having previously resigned or having been removed from office.

Release of Trustee. The trustee may apply for a release when he has ceased to act by reason of a composition having been approved, or when he has resigned or been removed from office. The Board of Trade must, on his application, cause a report on his accounts to be prepared and, on his complying with all the requirements of the Board, the Board must take into consideration the report, and any objection by any creditor or person interested against his release, and must either grant or withhold the release accordingly, subject, however, to an appeal to the High Court. The release when granted frees the trustees from all liability in respect of any act done or default made by him in the administration of the affairs of the bankrupt, or otherwise in relation to his conduct as trustee, but any such order of release may be revoked on proof that it was obtained by fraud or by suppression or concealment of any material fact.

Duties of the Trustee.

The trustee must, as soon as may be, take possession of all documents and property of the bankrupt, realize the property to the best advantage, and, as speedily as possible, distribute

the proceeds among the creditors in the prescribed order of preference. He must obey any orders of the Board of Trade, and must have regard to any directions that may be given by resolution of the creditors at a general meeting, or by the committee of inspection. If the directions given by the two latter bodies should conflict, those of the general meeting of creditors override those given by the committee. He must make no profit in any way out of the estate beyond the remuneration allowed him by the creditors or committee of inspection. The trustee must keep proper books and accurate accounts of all transactions, and must pay all money received by him into the Bankruptcy Estates Account at the Bank of England.

The Board of Trade may authorize payment into a local bank; but under no circumstances may he pay money received by him as trustee into his private banking account. The accounts are audited, from time to time, by the committee of inspection and by the Board of Trade.

Powers of the Trustee. The trustee may exercise the right of transferor of stock, shares in ships, shares in companies, and choses in action generally in like manner as the bankrupt might have done.

He has absolute authority to

(1) Sell all or any part of the property of the bankrupt by public auction or privately.

(2) Give receipts for any money received by him; these act as an effectual discharge.

(3) Prove, claim and draw a dividend in respect of any debt
due to the bankrupt.

(4) Exercise any powers given him by the Act, and execute
any instruments necessary for their due fulfilment.
(5) If the bankrupt is tenant-in-tail (i.e., if he is the tenant

for life in an entailed estate which must descend to
his heir), deal with it in the same manner as the bankrupt
might have done.

With the permission of the Committee of Inspection, he can do the following things

(1) Carry on the business so far as may be necessary for the
beneficial winding up.

(2) Bring or defend actions relating to the property.
(3) Employ a solicitor or agent to take any proceedings or
do any business.

(4) Accept as consideration for the sale of any property a
sum of money payable at a future time, subject to
security as authorized by the committee.

(5) Mortgage or pledge any of the property to raise money
for the payment of the debts.

(6) Refer disputes to arbitration, and compromise any claim.
(7) Divide in its existing form amongst the creditors, accord-
ing to its estimated value, any property which from
its peculiar nature cannot be readily or advantageously
sold.
(8) Appoint the bankrupt himself to superintend the manage-
ment of the property or to carry on the trade for the
benefit of the creditors.

(9) Make such allowances as he may think just to the bank-
rupt out of his property, for the support of the bankrupt
and his family, or in consideration of his services if he
is engaged to assist in winding up the estate.

No general permission may be given to do the above acts, special permission must be given to do every particular act.

Committee of Inspection.

It is not essential that a committee of inspection should be appointed; but the creditors qualified to vote may, at any meeting by resolution, appoint a committee for the purpose of assisting the trustee or of superintending the administration of the bankrupt's property by the trustee. It must not consist of more than five or of less than three persons, being creditors, or the holders of a general proxy or general power of attorney from a creditor, or persons to whom a creditor intends to give a general proxy or power of attorney; but no member so appointed may act until the creditor has proved his debt and the proof has been admitted and the person to whom it was intended to give the proxy or power of attorney actually holds it.

The committee meets at least once a month, and the trustee or any member may call a meeting as and when he thinks necessary. It may act by a majority of the members present at a meeting, and a majority of the committee forms a quorum.

The appointment of a member of the committee terminates— (1) If he resigns, which he may do by notice in writing delivered to the trustee.

(2) If he becomes bankrupt or compounds or arranges with his creditors.

(3) If he is absent from five consecutive meetings. (4) If he is removed, which may be done by an ordinary

resolution at any meeting of creditors of which seven days' notice has been given stating the object of the meeting.

If no committee of inspection is appointed, any act or thing

or any direction or permission authorized or required to be done or given by the committee may be done or given by the Board of Trade.

The committee supervises the performance of the duties of the trustee, and the general administration of the estate. The trustee's accounts are audited by the committee of inspection, which must see that all books, i.e., the Trading Account if the business is being continued, and the Cash Book and vouchers, are produced. The Trading Account (if any) must be audited by the Committee at least once in every month, and the Cash Book at least once in every three months, but both may of course be audited oftener if desired. On the completion of the audit, the committee signs a certificate in the books to that effect.

Realization of the Property.

The bankrupt's property which is available for the payment of his debts includes, with certain exceptions, all property to which he has a title of any kind, and also certain property which he has already assigned and which may, under some circumstances, be recovered by the trustee. The property may, therefore, be divided into two classes, viz., Divisible Property, and Property not Divisible, in accordance with Section 38 of the Act. DIVISIBLE PROPERTY comprises

Property belonging to the Bankrupt.-This means all property that may belong to or be vested in the bankrupt at the commencement of the bankruptcy, or may be acquired by or devolve on him before his discharge. The property "belonging to" the bankrupt would probably be held to include the right to bring an action, both in contract and tort, where the estate is affected, but not in the case of contracts or injuries of a personal nature. It was held in Bailey v. Thurston (1903), where a bankrupt had been wrongfully dismissed from his employment after he had been adjudged bankrupt, that the right to sue for damages remained in him and was not vested in the trustee.

All transactions of a bankrupt with any person dealing with him bona fide and for value, in respect of any property, whether real or personal, acquired by him after adjudication, if completed before any intervention by the trustee, is valid against the trustee.

It was held in In re Roberts (1900) that the trustee has no claim against the personal earnings of the bankrupt so far as they are necessary for the maintenance of himself, his wife and family. But, by Section 51, the Act provides that where a bankrupt is an officer of the army, navy or civil service, the trustee can receive so much of the bankrupt's pay or salary as the court, with the consent of the department concerned, may

direct. And where the bankrupt is in receipt of salary or income other than as aforesaid, or is entitled to half pay, pension or any compensation granted by the Treasury, the court will, from time to time, make such order as it thinks just for the payment of the income, or any part thereof, to the trustee. Somewhat similar rules apply where the bankrupt is a beneficed clergyman.

Powers and Rights.-The trustee can exercise, and take proceedings for exercising, all such powers in or over or in respect of property as might have been exercised by the bankrupt for his own benefit, at the commencement of his bankruptcy or before his discharge, except the right of nomination to a vacant ecclesiastical benefice. So that if, for example, the bankrupt has a right of disposition over property under which he can exercise it in his own favour if he wishes, he can be compelled so to exercise such power of appointment and the property will vest in the trustee.

Goods in the Bankrupt's Reputed Ownership.-All goods being, at the commencement of the bankruptcy, in the possession, order or disposition of the bankrupt—

(a) In his trade or business,

(b) By the consent and permission of the true owner, (c) Under such circumstances that he is the reputed owner thereof are available for the creditors.

All three conditions must be fulfilled before the clause applies. It is provided, however, that things in action, other than debts due or growing due to the bankrupt in the course of his trade or business, shall not be deemed goods within the meaning of this section.

It is sufficient to bring goods within the doctrine of "reputed ownership" if the goods are in such a situation as to convey to the minds of those who know their situation the reputation of ownership, and the court will judge from the situation of the goods what inference as to ownership might legitimately be drawn from those who knew the facts. The whole question is one of fact; but, even so, the doctrine may be excluded by a trade custom which ousts the inference that might otherwise be drawn, e.g., as in Crawcour v. Salter (1881), where judicial notice was taken of the common practice of hotel-keepers to hire furniture, so that hotel furniture is not in the reputed ownership of the hotel-keeper. There is a similar custom with regard to jewellers, where stock is usually held on sale or return. But the mere fact that goods are held on sale or return is not necessarily sufficient in itself to oust the doctrine of Reputed Ownership. It was held in In re Button (1907) that where the trustee takes goods under this section, the true owner is entitled to prove for their value.