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Contents

Part VI

98. Appointment of Trustees

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

It shall be possible for creditors to appoint, by a resolution of a majority in value of creditors, some fit person other than the Official Receiver as Bankruptcy Trustee.

(2)

A person shall be deemed fit to act as Bankruptcy

Trustee where such person -

(a)

has not been previously removed from the office of Bankruptcy Trustee for misconduct or neglect of duty;

(b)

is not or has not been within the period of two years immediately preceding the date of commencement of the Bankruptcy being a creditor of the debtor;

(c)

is qualified under section 12 to be appointed and act as a key office holder with respect to the

Bankruptcy;

(d)

has certified in writing that the person is qualified under section 12 to be appointed and act as a key office holder with respect to the Bankruptcy; and

(e)

has consented in writing to the appointment as a Bankruptcy Trustee and has not withdrawn consent at the time of appointment.

(3)

On an application to court by a creditor of the bankrupt debtor, the court shall confirm the appointment of the Bankruptcy Trustee, unless the court considers that —

(a)

the appointment has not been made by a majority in value of the creditors voting;

(b)

the person appointed is not fit to act as trustee in accordance with subsection (2); or

(c)

the relationship between the person and the bankrupt debtor, the property of the bankrupt

Rescue, Rehabilitation and Insolvency debtor, or the creditor makes it difficult for the person to act with impartiality and in furtherance of the goals of the bankruptcy process.

(4)

On approving an application for the appointment of a person as Bankruptcy Trustee under subsection (3), the court shall issue a certificate confirming this person’s appointment.

(5)

The appointment of a Bankruptcy Trustee shall take effect as from the date of the certificate.

(6)

A person who, with the person’s consent, is appointed or acts as a Bankruptcy Trustee knowing that any of the requirements of paragraph (a), (b) or (c) of subsection (2)

has not been met, commits an offence.

Part VII

Personal Insolvency Register

Part VIII

Part IX

Part X

Compromises

Part XI

Micro Small Medium Enterprise (MSME) Company Debt Restructuring Arrangements

Part XII

Part XIII

Part XIV

Cross - Border Insolvency

Part XV

Part XVI

Part XVII

Schedules