Insolvency Act 1986, section 300

Vacancy in office as trustee

Part IX Bankruptcy

(1)This section applies where the appointment of any person as trustee of a bankrupt’s estate fails to take effect or, such an appointment having taken effect, there is otherwise a vacancy in the office of trustee.

(2)The official receiver shall be trustee until the vacancy is filled.

[F779 (3)The official receiver may ask the bankrupt's creditors to appoint a person as trustee, and must do so if so requested by not less than one tenth in value of the bankrupt's creditors.

(3A)If the official receiver makes such a request the bankrupt's creditors may in accordance with the rules appoint a person as trustee.F779]

(4)If at the end of the period of 28 days beginning with the day on which the vacancy first came to the offical receiver’s attention he has not [F780asked, and is not proposing to ask, the bankrupt's creditors to appoint a person as trusteeF780] , he shall refer the need for an appointment to the Secretary of State.

F781(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)F782On a reference to the Secretary of State under subsection (4) . . . the Secretary of State shall either make an appointment or decline to make one.

(7)F782If on a reference under subsection (4) . . . no appointment is made, the official receiver shall continue to be trustee of the bankrupt’s estate, but without prejudice to his power to make a further reference.

(8)References in this section to a vacancy include a case where it is necessary, in relation to any property which is or may be comprised in a bankrupt’s estate, to revive the trusteeship of that estate after the [F783vacation of office by the trustee under section 298(8)F783] or the giving by the official receiver of notice under section 299(2).

Cases considering section 300 4

Donaldson v O'Sullivan

[2008] EWCA Civ 879 · 30 July 2008

Provides the statutory machinery for dealing with a vacancy in the office of trustee. The court uses it to explain the role of the official receiver, creditors and Secretary of State if no replacement is appointed. (see paras [15], [21]) Cited only. Confirms that the official receiver acts as trustee while a vacancy remains unfilled. (see paras [15], [21]) Cited only. Confirms the statutory reference procedure to the Secretary of State if a vacancy remains and no creditors’ meeting is proposed. (see paras [15], [21]) Cited only. Confirms that the official receiver continues as trustee if the Secretary of State makes no appointment. (see paras [15], [21])

Donaldson v O'Sullivan

[2008] EWHC 387 (Ch) · 29 February 2008Limits

The default mechanism under section 300, whereby the Official Receiver assumes responsibility during a vacancy, does not exclude the court’s power under section 303(2) to appoint a successor directly and avoid a vacancy. (see paras [40], [52])

Mulkerrins (formerly Woodward) (FC) (Appellant) v. Pricewaterhouse Coopers (a firm) (formerly trading as Copers & Lybrand (a firm) (Respondents)

[2003] UKHL 41 · 31 July 2003

The provision operated so that, following the former trustee’s release, the Official Receiver became trustee and assumed the ordinary duty to realise estate assets. (See Lord Millett, unnumbered paragraph beginning “At the beginning of the story”.)

What each judgment says about section 300 is in the case-law panel in the full Act.

Amendments and notes

8 notes from legislation.gov.uk

Amendments

  1. F779S. 300(3)(3A) substituted for s. 300(3) (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 79(2); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
  2. F780Words in s. 300(4) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 79(3); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
  3. F781S. 300(5) repealed (1.4.2004) by 2002 c. 40, ss. 269, 278, 279, Sch. 23 para. 11(a), Sch. 26 (with s. 249(6)); S.I. 2003/2093, art. 2(2), Sch. 2 (subject to arts. 3-8 (as amended by S.I. 2003/2332, art. 2))
  4. F782Words in s. 300(6)(7) repealed (1.4.2004) by 2002 c. 40, ss. 269, 278, 279, Sch. 23 para. 11(b), Sch. 26 (with s. 249(6)); S.I. 2003/2093, art. 2(2), Sch. 2 (subject to arts. 3-8 (as amended by S.I. 2003/2332, art. 2))
  5. F783Words in s. 300(8) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 79(4); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)

Modifications

  1. C1005Ss. 298-307 applied (with modifications) by S.I. 1986/1999, art. 3, Sch. 1 Pt. II (as amended (6.4.2016) by The Enterprise and Regulatory Reform Act 2013 (Consequential Amendments) (Bankruptcy) and the Small Business, Enterprise and Employment Act 2015 (Consequential Amendments) Regulations 2016 (S.I. 2016/481), reg. 1, Sch. 2 para. 2(7)(c))
  2. C1006S. 300 applied (with modifications) (1.12.1994) by S.I. 1994/2421, art. 8(3)(9), Sch. 4 Pt. II para. 12
  3. C1007S. 300 modified (1.12.1994) by S.I. 1994/2421, art. 11(2)(3), Sch. 7 para. 17