Directive No. 24 (Pre-1992)

Withdrawal of Advances on Trustee Remuneration in Ordinary Bankruptcy Administration

Issued: March 22, 1989

Reissued: January 10, 1991

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Printable Version: Withdrawal of Advances on Trustee Remuneration in Ordinary Bankruptcy Administration (PDF Format, 229 KB)

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Background

1. Although Section 39 and Rule 63 of the Bankruptcy Act provide for the remuneration to which the trustee may be entitled, the Act is silent with respect to an advance, or interim draw, on account of his remuneration. It is recognized, however, that the trustee in exercising proper business practices, is desirous of recovering his work-in-progress and disbursements on a regular and timely basis throughout the administration of an estate.

   Purpose

2. This Directive sets out the proper procedure the trustee should follow in withdrawing an advance, or interim draw, on his remuneration in an ordinary administration.
3. Approval of the quantum of such advances is not covered by this Directive, nor does it apply to the Registrar, or taxing officer, who will exercise their discretion as they see fit.

   Policy

4. To withdraw an advance on his remuneration the trustee must obtain proper authorization in the form of a resolution of a duly constituted meeting of creditors or of a majority of the inspectors or make application to the Court for an order approving payment of the advance.
5. The trustee must ensure that sufficient funds remain in the trust account to cover the disbursements and fees necessary to complete the administration of estates.
6. The request of the trustee for an advance should stipulate the specific dollar amount which should also be reflected in the minutes of the meeting of creditors or inspectors and/or in the Court Order.
7. In such instances where a Registrar or taxing officer reduces the remuneration of the trustee to an amount which is less than an advance withdrawn by the trustee, such excess must be repaid to the estate forthwith and the official receiver should be notified in writing of the repayment or other changes due to the taxation.

   Effective date

8. This Directive will take effect upon the issuance date.

   Buletin 1966-5

9. This Directive replaces Bulletin to Trustees 1966-5 dated August 15, 1966.

The Superintendent of Bankruptcy
Wally Clare

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