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

While administering the estate of the bankrupt Mr. Kulkarni, the trustee is concerned about funding the final creditors' meeting under Section 137. What does the section require of him?

The bankruptcy trustee must retain enough money from the bankrupt's estate during administration to meet the costs of convening and conducting the final committee of creditors meeting. The expense is met from the estate, not from creditors, the Board or the trustee personally.

  1. ARetain sufficient sums from the estate to meet the expenses of convening and conducting the meetingCorrect
  2. BAsk each creditor to pay a share of the meeting costs after distribution
  3. CSeek a separate grant from the Board
  4. DPay the expenses personally and not recover them

Explanation

Section 137(4) obliges the trustee to retain sufficient sums from the estate, during administration, to meet the expenses of convening and conducting the meeting. It does not shift the cost to creditors or the trustee personally.

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