Insolvency Act 1986

299 Release of trustee.E+W

(1)Where the official receiver has ceased to be the trustee of a bankrupt’s estate and a person is appointed in his stead, the official receiver shall have his release with effect from the following time, that is to say—

(a)where that person is appointed by F1... the bankrupt’s creditors or by the Secretary of State, the time at which the official receiver gives notice [F2under this paragraph to the prescribed person] that he has been replaced, and

(b)where that person is appointed by the court, such time as the court may determine.

(2)If the official receiver while he is the trustee gives notice to the Secretary of State that the administration of the bankrupt’s estate in accordance with Chapter IV of this Part is for practical purposes complete, he shall have his release with effect from such time as the Secretary of State may determine.

(3)A person other than the official receiver who has ceased to be the trustee shall have his release with effect from the following time, that is to say—

(a)in the [F3following cases], the time at which notice is given to the [F4prescribed person] in accordance with the rules that that person has ceased to hold office [F5—

(i)the person has been removed from office by a decision of the bankrupt's creditors and the creditors have not decided against his release,

(ii)the person has died;]

[F6(b)in the following cases, such time as the Secretary of State may, on an application by the person, determine—

(i)the person has been removed from office by a decision of the bankrupt's creditors and the creditors have decided against his release,

(ii)the person has been removed from office by the court or by the Secretary of State,

(iii)the person has vacated office under section 298(6);]

(c)in the case of a person who has resigned, such time as may be prescribed;

(d)in the case of a person who has vacated office under section 298(8)—

[F7(i)if any of the bankrupt's creditors objected to the person's release before the end of the period for so objecting prescribed by the rules, such time as the Secretary of State may, on an application by that person, determine, and

(ii)otherwise, the time at which the person vacated office.]

[F8(3A)Where the person is removed from office by a decision of the bankrupt's creditors, any decision of the bankrupt's creditors as to whether the person should have his release must be made by a creditors' decision procedure.]

(4)Where a bankruptcy order is annulled, the trustee at the time of the annulment has his release with effect from such time as the court may determine.

(5)Where the offical receiver or the trustee has his release under this section, he shall, with effect from the time specified in the preceeding provisions of this section, be discharged from all liability both in respect of acts or omissions of his in the administration of the estate and otherwise in relation to his conduct as trustee.

But nothing in this section prevents the exercise, in relation to a person who has had his release under this section, of the court’s powers under section 304.