Div 20Joint and Separate Estates.

Division 20.—Joint and Separate Estates. First meeting. No. 37 1924 s. 84 (4). 277. Where a sequestration order is made against a firm, the joint and separate creditors shall collectively be convened to the first meeting of creditors. Acceptance of composition, &c., by joint and separate creditors. 278.—(1.) The joint creditors, and each set of separate creditors, may severally accept compositions or schemes of arrangement. (2.) So far as circumstances will allow, a proposal accepted by joint creditors may be approved in the prescribed manner, notwithstanding that the proposals or proposal of some or one of the debtors made to their or his separate creditors are not accepted. Voting on composition. 279.—(1.) Where proposals for compositions or schemes are made by a firm, and by the partners therein individually, the proposal made to the joint creditors shall be considered and voted upon by them apart from every set of separate creditors; and the proposal made to each separate set of creditors shall be considered and voted upon by that separate set of creditors apart from all other creditors. (2.) The proposals may vary in character and amount. (3.) Where a composition or scheme is approved, the sequestration order shall be discharged only so far as it relates to the estate, the creditors of which have accepted the composition or scheme. 280.—(1.) Upon a sequestration order being made against a partnership the trustee appointed by the joint creditors shall be the trustee of the separate estates. Committee of Inspection. (2.) Each set of separate creditors may appoint its own Committee of Inspection; but if any set of separate creditors do not appoint a separate Committee of Inspection, the Committee (if any) appointed by the joint creditors shall be deemed to have been appointed also by the separate creditors. Separate firms. 281.—(1.) If any two or more of the members of a partnership constitute a separate and independent firm, the creditors of the last-mentioned firm shall be deemed to be a separate set of creditors, and to be on the same footing as separate creditors of any individual member of the firm. (2.) Where any surplus arises upon the administration of the assets of the separate or independent firm it shall be carried over to the separate estates of the partners in the separate and independent firm according to their respective rights therein. Apportionment of trustee’s remuneration. 282. Where joint and separate estates are being administered, the remuneration of the trustee in respect of the administration of the joint estate may be fixed by the creditors, or (if duly authorized), by the Committee of Inspection, of the joint estate, and the remuneration of the trustee in respect of the administration of any separate estate may be fixed by the creditors, or (if duly authorized), by the Committee of Inspection, of the separate estate.