Committee of inspection

(1) The creditors qualified to vote may, at their first or any subsequent meeting, by resolution, appoint from among the creditors, or the holders of general proxies for general powers of attorney from such creditors, a committee of inspection for the purpose of superintending the administration of the bankrupt’s property by the trustee. (2) The committee of inspection shall consist of not more than five nor less than three persons, but a creditor who is appointed a member of a committee of inspection shall not be qualified to act until he has proved his debt and the proof has been admitted. (3) The committee of inspection shall meet at such times as they shall from time to time appoint and, failing such appointment, at least once a month, and the trustee or any member of the committee may also call a meeting of the committee as and when he thinks necessary. (4) The committee may act by a majority of their members present at a meeting, but shall not act unless a majority of the committee are present at the meeting. 25 (5) Any member of the committee may resign his office by notice in writing signed by him, and delivered to the trustee. (6) Where a member of the committee becomes bankrupt or compounds or arranges with his creditors, or is absent from five consecutive meetings of the committee, his office shall thereupon become vacant. (7) Any member of the committee may be removed by an ordinary resolution at any meeting of creditors, of which seven days’ notice has been given, stating the object of the meeting. (8) On a vacancy occurring in the office of a member of the committee, the trustee shall forthwith summon a meeting of creditors for the purpose of filling the vacancy, and the meeting may, by resolution, appoint another creditor or other person eligible as above to fill the vacancy. (9) The continuing members of the committee, provided there be not less than two such continuing members, may act, notwithstanding any vacancy within their body, and where the number of the members of the committee of inspection is for the time being less than five, the creditors may increase that number so that it does not exceed five. (10) Where there be no committee of inspection, any act or thing or any direction or permission by this Act authorised or required to be done or given by the committee, may be done or given by the court on the application of the trustee.