Commonwealth Consolidated Regulations

INSOLVENCY PRACTICE RULES ( BANKRUPTCY ) 2016

- made under the Bankruptcy Act 1966

TABLE OF PROVISIONS

   PART 1--INTRODUCTION

           Division 1--Introduction

   1.1.    Name  
   1.10.   Authority  

           Division 5--Definitions

   5.5.    The Dictionary  
   5.10.   What is a current registration?  
   5.15.   Meaning of material personal interest  

   PART 2--REGISTERING--AND DISCIPLINING PRACTITIONERS

           Division 15--Register of Trustees

   15.1.   Register of Trustees  

           Division 20--Registering trustees

   20.1.   Qualifications, experience, knowledge and abilities required by applicants for registration  
   20.5.   Conditions on registration of trustees  
   20.10.  Prescribed amount of notified estate charges  

           Division 35--Notice requirements

   35.1.   Events of which a registered trustee must notify the Inspector - General  

           Division 40--Disciplinary and other action

   40.1.   Industry bodies that may notify the Inspector - General of grounds for disciplinary action  

           Division 42--Standards for registered trustees

              Subdivision AA--Introduction

   42.1.   Authority  
   42.4.   Purpose of Division  
   42.4A.  Compliance with standards by trustee's employees  

              Subdivision A--Standards for registered trustees generally

   42.5.   Application of this Subdivision  
   42.10.  Trustees to act honestly and impartially  
   42.15.  Communication  
   42.20.  Conflict of interest  
   42.30.  Preliminary inquiries and actions  
   42.35.  Investigations and inquiries of matters affecting an administration  
   42.40.  Realising assets  
   42.45.  Ownership or interests in assets  
   42.50.  Obtaining advice about interest or value  
   42.55.  Disposal of property  
   42.60.  Costs incurred to be necessary and reasonable  
   42.65.  Rate for tasks undertaken by trustee's staff  
   42.70.  Keeping proper records in relation to work done  
   42.75.  Need for meeting  
   42.80.  Matters to be considered when holding a meeting  
   42.85.  Attendance at meetings  
   42.90.  Verifying payments and transfers  
   42.95.  Separate accounts and records  

              Subdivision B--Standards for trustees other than controlling trustees

   42.120. Application of this Subdivision  
   42.125. Provable debts in a joint administration  
   42.130. Creditors' views to be considered  
   42.135. Distribution of estate funds  
   42.140. Advice relating to dividends and administration  

              Subdivision C--Standards for trustees of bankrupt estates

   42.170. Application of this Subdivision  
   42.175. Identifying assets for vesting  
   42.180. Protecting certain assets  
   42.185. Income and contribution assessment  
   42.190. Monitoring payment of contributions  

              Subdivision D--Standards for controlling trustees

   42.210. Application of this Subdivision  
   42.215. Notification of administration  
   42.220. Investigating debtor's property and income  
   42.225. Report to creditors  

           Division 50--Part 2 committees

   50.1.   Authority  
   50.5.   Part 2 committee may generally determine its own procedures  
   50.10.  ARITA may appoint a member of a Part 2 committee  
   50.15.  Knowledge and experience required of a member of a Part 2 committee appointed by ARITA  
   50.20.  Chair of a Part 2 committee  
   50.25.  Resignation of Part 2 committee members  
   50.30.  Part 2 committee to be reconstituted--removing ARITA members  
   50.35.  Part 2 committee to be reconstituted--removing members appointed by the Minister  
   50.40.  Part 2 committee to be reconstituted--replacing members  
   50.45.  Termination of consideration, and transfer, of a matter  
   50.47.  Termination of consideration of a matter if no utility  
   50.50.  Duty to disclose interests  
   50.55.  Natural justice and rules of evidence  
   50.60.  Decisions made at a meeting  
   50.65.  Decisions made without a meeting  
   50.70.  Keeping records of decisions  
   50.75.  Inquiries by a Part 2 committee  
   50.80.  Interviewing applicants  
   50.85.  Interviewing trustees--proposed cancellation of registration  
   50.90.  Decisions on disciplinary matters  
   50.95.  Reports of a Part 2 committee  
   50.100. Industry disciplinary bodies to which a Part 2 committee may disclose information  

   PART 3--GENERAL--RULES RELATING TO ESTATE ADMINISTRATIONS

           Division 60--Remuneration and other benefits received by the trustee

   60.1.   Authority  
   60.5.   Circumstances in which the Inspector - General may determine remuneration  
   60.10.  Application to the Inspector - General to determine remuneration  
   60.15.  Matters to which the Inspector - General must have regard  
   60.17.  Notice of remuneration determination by Inspector - General  
   60.20.  Remuneration on a percentage basis--maximum percentage  
   60.25.  Trustee must not derive profit or advantage from the administration of the estate--exceptions  

           Division 65--Funds handling

              Subdivision A--General rules

   65.1.    Administration account  
   65.5.   Penalty interest  

              Subdivision B--Review of third party bill of costs

   65.20.  Application to Inspector - General for review of third party bill of costs  
   65.25.  Application to Court for review of Inspector - General decision  

           Division 70--Information

   70.1.   Time for complying with reasonable requests  
   70.5.   Notice requirements for unreasonable requests  
   70.10.  Right of creditors to request information etc. from trustee  
   70.15.  Right of individual creditor to request information etc. from trustee  
   70.17.  Right of regulated debtor to request information etc. from trustee  
   70.30.  Initial information and declarations required to be given to creditors  
   70.35.  Initial remuneration notice  
   70.45.  Reports about remuneration to be given before remuneration determinations are made  
   70.47.  Remuneration claim notice  
   70.51.  Declarations of relevant relationships must be kept up to date  
   70.55.  Requests for information by the Commonwealth  

           Division 75--Meetings

              Subdivision A--Preliminary

   75.1.   Authority  

              Subdivision B--Convening meetings

   75.5.   When certain meetings must be convened  
   75.10.  Persons to whom notice of meetings to be given  
   75.15.  How notice of meetings to be given  
   75.20.  Time for giving notice of meetings  
   75.25.  Notice about voting by proxy and appointment of attorney  
   75.27.  Additional rules for meetings under section 188 of Act  
   75.30.  Time and place of meetings  
   75.35.  Notice of electronic facilities for meetings  
   75.40.  Notification of first meeting to be lodged with Inspector - General etc.  

              Subdivision C--Procedures at meetings

   75.50.  Presiding at meetings  
   75.55.  Agenda  
   75.60.  Tabling of documents at certain meetings of creditors etc.  
   75.65.  Conducting meetings  
   75.70.  Proposed resolutions and amendments of proposed resolutions  
   75.75.  Participating in meetings by electronic means  
   75.80.  Statement by creditor as to amount of debt  
   75.85.  Entitlement to vote at meetings of creditors  
   75.90.  Evidence relating to proof of debt  
   75.95.  Evidence of liability for debt  
   75.100. Decisions in relation to entitlement to vote at creditors' meeting  
   75.105. Quorum  
   75.110. Voting on resolutions  
   75.115. When a resolution is passed at a meeting of creditors after a poll is demanded  
   75.130. When a resolution is passed without a meeting of creditors  
   75.132. When a special resolution is passed at a meeting of creditors  
   75.137. When a special resolution is passed without a meeting of creditors  
   75.140. Adjournment of meetings of creditors  
   75.145. Minutes of meetings of creditors  

              Subdivision D--Rules about proxies and attorneys

   75.150. Appointment of proxies  
   75.155. Person may attend and vote by attorney  
   75.160. Voting by proxy or attorney on remuneration proposals  

              Subdivision E--Additional rules for particular kinds of estates

   75.170. Joint administrations  
   75.175. Calling a meeting in relation to compositions or arrangements  
   75.180. Documents to be tabled at meeting in relation to compositions or arrangements  

              Subdivision F--Other rules about meetings

   75.250. Directions to trustee to convene a meeting--when reasonable and not reasonable  
   75.255. Notice requirements for unreasonable directions  
   75.260. Duties of trustee when presiding at meeting  
   75.265. Requirements relating to meetings to remove trustee of a regulated debtor's estate  
   75.270. Substantial compliance with Division is sufficient  

           Division 80--Committees of inspection

   80.5.   Eligibility and procedures  
   80.10.  Resignation, removal and vacancies  
   80.15.  Reasonable requests for information etc.  
   80.20.  Time for complying with reasonable requests  
   80.25.  Notice requirements for unreasonable requests  

           Division 90--Review of the administration of a regulated debtor's estate

              Subdivision A--Review by Inspector-General

   90.1.   Authority  
   90.5.   Review of trustee remuneration on application  
   90.10.  Application threshold  

              Subdivision B--Conduct of reviews by Inspector-General

   90.50.  Preliminary  
   90.55.  Conduct of review and powers  
   90.60.  Non - compliance with directions  
   90.65.  Decision of Inspector - General on review  

              Subdivision C--Application to Court for review of administration

   90.80.  Time limit on certain applications to Court for review  

              Subdivision D--Other matters

   90.85.  Notification to Official Receiver if former trustee is reappointed  
   90.90.  Official Receiver must issue certificate of appointment in certain cases  

   PART 5--TRANSITIONAL--MATTERS

           Division 110--Transitional matters relating to the Insolvency Practice (Bankruptcy) Amendment Rules 2022

   110.1.  Definitions  
   110.2.  Trustee experience  
   110.3.  Trustee registration conditions  
   110.4.  Part 2 committee consideration of matters  
   110.5.  Remuneration determinations  
   110.6.  Review of decisions relating to third party bills of costs  
   110.7.  Giving of information  
   110.8.  Meetings of creditors  
   110.9.  Value of certain assigned debts