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BANKRUPTCY may be paid without taxation ; and the time for declaring the time to ascertain their wishes, and must do so when so required by first dividend is extended to six months, but the whole estate must one-sixth in value of the creditors, or when directed by the court. realized and distributed within this period if practicable. No The Board of Trade may also direct the Official Receiver to summon be however, is permitted in the procedure relating to the a meeting for the purpose of reviewing any act done by the trustee modification, public examination and discharge of the bankrupt. . Notwithor any resolution of the committee of inspection. Further, the standing that an order has been made for summary administration, trustee may apply to the court for directions in any particular matter, and the court may also, on the application of any person the creditors may at any time by a resolution passed by a majority aggrieved, reverse or modify any act of the trustee, or mate such in number and three-fourths in value of those voting at the meetorder as it deems just. The directions of the court override those ing, appoint a trustee in place of the Official Receiver, in which case of the creditors. The Board of Trade is required to take general the summary order ceases to be operative. cognizance of the conduct of trustees, to inquire into any comScottish Bankruptcy Legislation. plaints by creditors, and in the event of any trustee not faithfully performing his duties, to take such action, including the power of Since the publication of the ninth edition of this work removal, as may be expedient. It may also direct a local investi- some important changes have taken place in the law gation of the trustee’s books and accounts, and may require him of bankruptcy in Scotland, although the main features to answer any inquiries, or may apply to the court to examine him on oath. If any loss has arisen to the estate from any misfeasance, of that law, as embodied in the Act of 1856, remain peglect, or omission of the trustee, it may require him to make substantially untouched. Among the less important it good. The orders of the Board of Trade under the powers con- alterations may be mentioned those effected by the Bankferred by the Act may be enforced by the court by committal of ruptcy and Real Securities Act of 1857, which deals with the trustee or otherwise. Audit of Accounts.—The trustee’s accounts must be audited by the costs of competition for trusteeships; the Bankruptcy the committee of inspection not less than once in every three Amendment (Scotland) Act, 1860, which enables the Court months ; and once in every six months, as well as at the close of to recall a sequestration where it is more convenient that the administration, the record and cash books must also be sub- the estate should be wound up in England or Ireland; and mitted with the vouchers, and the committee’s certificate of audit the Bankruptcy Amendment Act (Scotland), 1875, which to the Board of Trade for final audit. If it appears that the trustee has retained more than £50 in hand for more than ten makes the wages of clerks, shopmen, and servants preferdays without a satisfactory explanation, he may be removed from ential claims for a period not exceeding four months and office, surcharged with interest at the rate of 20 per cent, per an amount not exceeding £50, while the claims of workannum, and lose all claim to remuneration. Remuneration.—The trustee’s remuneration is fixed by the men are placed on a similar footing for a period not excreditors, or by the committee if so authorized by them. It must ceeding two months. One of the principal modifications be in the nature of a percentage on the amount of the realizations is that effected by the Debtors (Scotland), Act of 1880, and on the dividends. If one-fourth of the creditors in number or which abolished imprisonment for debt, but which, like value dissent from the resolution, or if the bankrupt satisfies the its English prototype (the Debtors Act of 1869), contains Board of Trade that the remuneration is excessive, the Board may review the same and fix the remuneration. A trustee may not a series of important provisions for the punishment of receive any remuneration for services rendered in any other fraudulent bankrupts. Under these provisions the laws capacity, e.g., as solicitor, auctioneer, etc. beyond that voted to him of the two countries on that subject are practically assimias trustee ; nor may he share his remuneration with the bankrupt, lated, although some minor differences still survive. One the solicitor, or other person employed about the bankruptcy ; or receive from any person any gift, or other pecuniary or personal of the most important of these differences is, that while the Scottish Act makes the failure, within the three years benefit in connection therewith. Costs. —A trustee receiving remuneration is not allowed the costs prior to the sequestration, to keep “ such books and accounts of any other person in respect of duties which ought to be per- as, according to the usual course of any trade or business in formed by himself. All bills of solicitors and other agents employed must be taxed before payment, as being in accordance with which he (the debtor) may have been engaged, are necesthe prescribed scales of costs ; and the taxing master must satisfy sary to exhibit or explain his transactions” a criminal himself that the employment has been properly authorized before offence, the English Act contains no provision of an the work was done. All bills of costs must be delivered to the analogous character; the non-keeping of such books being trustee within seven days of the request for the same, otherwise treated as a fact to be taken into account in dealing with the estate may be distributed without regard to such costs. _ Release.—When the property, so far as it is capable of realization, the debtor’s application for his discharge, but not coming has been realized and distributed, the trustee must apply to the within the scope of the criminal law. On the other hand, Board of Trade for his release, forwarding to each creditor a notice there are a few minor trading irregularities dealt with in of his having done so, together with a copy of his final accounts, the English Act which are not specifically included in and the Board of Trade, after preparing and considering a report on the same, and the objections of any person interested, may, subject that of Scotland. Another important distinction is that to appeal to the High Court, grant or withhold the release. If a under the Scottish Act the same offences may be treated release is withheld, the court may, on the application of any person differently, according as they are brought for trial before interested, make such order against the trustee as it thinks just. the Court of Justiciary or a sheriff and jury, in which The release when granted operates as a removal from office, and thereupon the Official Receiver again becomes trustee, and is thus in a posi- case the maximum penalty is two years’ imprisonment; tion, even after the nominal close of the bankruptcy, to deal with any or before a sheriff without a jury, in which case the circumstances which may arise, or which have not been foreseen and penalty is limited to imprisonment for a period not provided for. exceeding sixty days. This distinction admits of a useful Small Bankruptcies. When the Official Receiver reports, or the court is otherwise elasticity in the administration of the law, having regard satisfied that the debtor’s property is not likely to realize more to the comparative importance of the case, which is hardly than £300, the court may make an order for the summary admin- possible under the English Act. istration of the estate, in which case, if the debtor is adjudged Another most important modification of the law is bankrupt, the Official Receiver in the ordinary course becomes and effected by the Debtors Act of 1880, combined with the remains trustee, and certain other modifications are effected with Bankruptcy and Cessio Act of 1881, and the Act of the view of simplifying and accelerating the procedure. The chief of these modifications are as follow, viz., the Board of Trade acts Sederunt anent Cessios of 22nd December 1882. Under as committee of inspection ; there is no advertisement of the pro- the law existing prior to these enactments, the process^ of ceedings in a local paper ; in legal proceedings all questions of law cessio honorum operated chiefly as a means for obtaining and fact are determined by the court without a jury ; adjudication release from imprisonment for debt on a formal surrender may be made on a report by the Official Receiver before the first meeting of creditors, where no composition or scheme is proposed ; by a debtor of all his goods and estate. But under this meetings of creditors may be held in the town where the court sits process the debtor was not entitled to a discharge, and his or the Official Receiver’s office is situated; notice to creditors of future acquired property was still subject to diligence^ at meetings other than the first meeting, or of application by a debtor the instance of unsatisfied creditors. By abolishing for his discharge, are dispensed with in the case of creditors for amounts not exceeding £2. Costs, other than a solicitor s charges, imprisonment for debt (except in regard to Crown debts