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CS Professional · Corporate Restructuring, Valuation and Insolvency · Convening and Conduct of Meetings of Committee of Creditors

While administering the estate, bankruptcy trustee Sandeep Nair plans for the final committee of creditors meeting. Which statement about funding that meeting is correct under Section 137?

The trustee must keep back enough money from the bankrupt's estate during administration to cover the cost of convening and conducting the final committee of creditors meeting. The expense is not passed to creditors, the trustee personally, or the bankrupt after discharge.

  1. AThe trustee must retain sufficient sums from the estate to meet the expenses of convening and conducting the meetingCorrect
  2. BThe bankrupt must pay the expenses from future income after discharge
  3. CEach creditor must pay a share of the expenses before the meeting
  4. DThe trustee must bear the expenses personally

Explanation

Section 137(4) requires the trustee to retain sufficient sums from the bankrupt's estate during administration to meet the expenses of convening and conducting the meeting. Charging creditors, the bankrupt later, or the trustee personally has no basis in the section.

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