75‑250 Directions to trustee to convene 75‑250 Directions to trustee to convene a meeting—when reasonable and not reasonable

75‑250 Directions to trustee to convene a meeting—when reasonable and not reasonable

(1) This section is made for the purposes of section 75‑15 of the Insolvency Practice Schedule (Bankruptcy). Unreasonable directions (2) A direction to the trustee of a regulated debtor’s estate to convene a meeting of the creditors is not reasonable if the trustee, acting in good faith, is of the opinion that: (a) complying with the direction would substantially prejudice the interests of one or more creditors or a third party and that prejudice outweighs the benefits of complying with the direction; or (b) there is not sufficient available property to comply with the direction; or (c) a meeting of the creditors dealing with the same matters covered by the direction has already been held, or will be held within 15 business days after the direction is given; or (d) the direction for the meeting is vexatious. (3) Without limiting paragraph (2)(d), a direction may be taken to be vexatious if it is given within 20 business days after a similar direction was given. Reasonable directions (4) A direction to the trustee of a regulated debtor’s estate to convene a meeting of the creditors is reasonable if subsection (2) does not apply to the direction. (5) Despite paragraph (2)(b) or (c), a direction to the trustee of a regulated debtor’s estate to convene a meeting is also reasonable if: (a) the creditors agree to bear the cost of complying with the direction; and (b) if required to do so by the trustee—security for the cost of complying with the direction is given to the trustee before the meeting is convened.