Insolvency Act.pdf - Intax Info

Provided that, if he carries on the business, it shall not be competent for the trustee as
between himself and the creditors to charge the estate with the cost of any goods purchased by
him, unless the same have been necessary for the immediate purpose of carrying on that
business and there are funds available for payment of the same after providing for the cost of
sequestration.
75. Duty of trustee at second meeting to report and take instructions in certain matters
(1) At the second meeting of creditors the trustee shall report to the creditors upon and
receive their directions as to the following matters-
(a) any allowance he has made to the insolvent and the reasons therefor;
(b) any business he may have been carrying on for the estate, any goods he may have
purchased for that business, and the result of so carrying on that business;
(c) any legal proceedings by or against the estate which were suspended by the
sequestration or may be pending or threatened;
(d)
(e)
any such matters or questions as are referred to in sections 35 and 37; and
any matter in regard to the administration or realization of the estate requiring the
direction of the creditors.
(2) The trustee may thereafter exercise his discretion in those matters in so far as the
creditors have failed to give him directions:
Provided that, in the absence of authority from the creditors, he may only purchase
goods for such business for cash, and as between himself and the creditors he shall be
personally liable for the costs of any legal proceedings instituted or defended by him without
directions from the creditors in so far as the estate is unable to meet the same, unless the court
otherwise orders.
76. What reports to be made at second meeting of creditors
At the second meeting of creditors the trustee shall report fully as to the circumstances
of the estate, and more especially as to-
(a)
(b)
(c)
(d)
the assets and liabilities thereof;
the cause of insolvency;
the books of the insolvent; stating whether he appears to have kept a proper record of
his transactions and, if not, in what respect the record is defective or irregular; and
the transactions of the insolvent previous to the sequestration, and what reason (if any)
there is for supposing that he is guilty of any contravention of this Act.
77. Sale of property after second meeting and manner of sale
(1) Except as provided in section 73 or 78, the trustee shall proceed after the second
meeting of creditors, and not before, to sell all the property in the estate in such manner and
upon such conditions as the creditors at the second or any subsequent meeting may direct.
(2) In default of directions by the creditors the trustee shall sell the property by public
auction or public tender.
(3) A sale by public auction or public tender shall be after notice published in the Gazette
and after such other notices as the Master may direct and, in the absence of directions from
creditors as to the conditions of sale, upon such conditions as the Master may direct.
(4) When the sale is by public tender, each tender shall be transmitted by the tenderer in
duplicate in a sealed cover to the Master, or if the Master so directs to a magistrate specified by
him.
(5) The Master or such magistrate shall keep each tender so sealed until the expiry of
the period for lodging of tenders.
(6) He shall then open the sealed covers, and, in the case of the Master, file one
duplicate of each tender or, in the case of a magistrate, transmit one duplicate of each tender to
the Master, who shall file it.
(7) The Master or the magistrate (as the case may be) shall forthwith transmit the other
duplicate of each tender to the trustee.
Copyright Government of Botswana