Duties of trustee as to declaration and distribution of dividends. (9.) Divide in its existing form amongst the creditors, according to its estimated value, any property which from its peculiar nature or other special circumstances cannot be readily or advantageously sold. The permission given for these purposes is not to be a general permission to do all or any of the above-mentioned things, but only a permission to do the particular thing or things for which permission is sought in the specified case or cases (s. 57). Distribution of Property. (153.) What are the duties of the trustee as to the declaration and distribution of dividends? It is the duty of the trustee, with all convenient speed, but subject to the retention of such sums as may be necessary for the costs of administration, or otherwise to declare and distribute dividends amongst the creditors who have proved their debts. The first must be declared and distributed within four months after the conclusion of the first meeting, unless the trustee satisfies the committee of inspection that there is sufficient reason for postponing the declaration to a later date, and subsequent dividends must, in the absence of sufficient reason to the contrary, be declared and distributed at intervals of not more than six months. Before declaring a dividend the trustee must cause notice of his intention to do so to be gazetted, and also send reasonable notice thereof to each creditor mentioned in the debtor's statement who has not proved. When he has declared a dividend he must send to each creditor who has proved, a notice showing the amount of the dividend, and when (154.) What is the rule as to dividends in the case Joint and of joint and separate estates? A creditor to whom a bankrupt member of a firm is indebted jointly with the other partners in the firm, or any of them, is not entitled to any dividend out of the bankrupt's separate property until all the separate creditors have been paid in full. Where joint and separate properties are being administered, dividends of the joint and separate properties, are, subject to any order to the contrary that may be made by the Court, on the application of any person interested, to be declared together; and the expenses of and incident to such dividends are to be fairly apportioned by the trustee between the joint and separate properties, regard being had to the work done for and the benefit received by each property (s. 59). (155.) In the distribution of a dividend, how are the rights of creditors residing at a distance pro vided for? separate estates, rule as to dividends in case of. How rights residing at of creditors a distance provided for in distribu dividend. In the calculation and distribution of a dividend, the trustee must make provision for debts provable in bankruptcy appearing from tion of the bankrupt's statements, or otherwise, to be due to persons resident in places so distant from the place where the trustee is acting that in ordinary course of communication they have not had sufficient time to tender their proofs, or to establish them if disputed, and also for provable debts, the subject of claims not yet Creditor who has not proved his determined. He should also make provision for any disputed proofs or claims, and the expenses necessary for the administration of the estate or otherwise, and subject to the foregoing provisions he is to distribute as dividend all money in hand (s. 60). (156.) Does a creditor who has not proved his debt before the declaration of a dividend thereby debt before lose his right to such dividend? declaration of dividend, position of. He is entitled to be paid out of any money for the time being in the hands of the trustee any dividend he may have failed to receive before that money is applied to the payment of any future dividend, but he is not entitled to disturb the distribution of any dividend declared before his debt was proved by reason that he has not participated therein (s. 61). (157.) When should a final dividend be declared, and what precaution must the trustee take before precaution declaring the same ? When final dividend declared; before declaring same. When the trustee has realised all the property of the bankrupt, or so much thereof as can, in the joint opinion of himself and the committee of inspection, be realised without needlessly protracting the trusteeship, it is his duty to declare a final dividend, but before doing so to give notice to the persons whose claims to be creditors have been notified to him, but not established to his satisfaction, that if they do not establish their claims to the satisfaction of the Court within a time limited by the notice, he will proceed to make a final dividend, without regard to their claims. After the expiration of the time so limited, or, of such further time as the Court may on application allow to the claimant, the bankrupt's property is to be divided among the creditors who have (158.) Can an action be sustained against a trustee for not paying a dividend which has been declared? No action for a dividend lies against the trustee. If he refuses to pay any dividend, the Court may order him to pay it, and also to pay out of his own money interest thereon for the time that it is withheld, and the costs of the application (s. 63). Trustee not paying dividend declared. (159.) What part may the bankrupt take in the Bankrupt administration of his property? aiding in administra property. The trustee may, with the permission of the tion of his committee of inspection, appoint the bankrupt to superintend the management of the property or any part thereof, or to carry on the trade (if any) of the bankrupt for the benefit of his creditors, and in any other respect to aid in administering the property in such manner and on such terms as the trustee may direct (s. 64). (160.) Is a bankrupt entitled to any allowance Allowance out of his estate? to bank rupt out of He is not entitled to any, but the trustee his estate. may from time to time, with the permission of the committee of inspection, make such allowance as he may think just to the bankrupt out of his property for the support of the bankrupt and his family, or in consideration of his services if he is engaged in winding up his estate, but any such allowance may be reduced by the Court (s. 64). (161.) An estate having been wound up, it is found that after paying the creditors in full, and Who entitled to surplus after estate the costs, charges, and expenses of the bankruptcy wound up. proceedings, there is a surplus. Who is entitled Remedy of creditor who has not paid dividends. to this? The bankrupt is entitled to the surplus (8. 65). (162.) A. is the trustee of B.'s estate; he has declared and paid dividends to the amount of 68. in the pound on B.'s estate, but has omitted to pay a dividend to C., a creditor, whose debt was proved, and who was entitled to such dividend. Will an action lie at the suit of C. against A., and if not, what is the remedy, and can C. recover interest? No action for a dividend lies against the trustee, but if the trustee refuses to pay any dividend, the Court may, if it thinks fit, order him to pay it, and also to pay out of his own money interest thereon for the time that it is withheld, and the costs of the application (s. 63). C. should ask the trustee to pay the dividend, and if he refuse to do so, should apply to the Court for an order for payment of the same with interest and costs. |