Equity and the Law of Trust

Equity and the Law of Trust

Introduction

In practice, the functioning of trust, very often the situation the bankruptcy of their existing trustee - long truck. One way to recover at least partially invested in the commercial entrepreneur is the procedure for liquidation by the trustee in bankruptcy in bankruptcy proceedings. Stop payment of obligations by entrepreneurs leads to the formation gridlock, which translate into financial problems of banks - creditors and other entrepreneurs. Businesses that have not paid contractors do not regulate obligations to its creditors, and thus winds up the spiral, which may in consequence lead to financial crisis.

Discussion

The economic law should deal with such phenomena. In the practice, of economic activity, essential for the entrepreneur is to recover its claims. Money has time value, so they last longer recovery of money that its value is less. The task of the legislator is create a system of law which adequately by conflict of interest between Jeremy and Kelvin (the Joint Trust) debt.

Procedure

The procedure for the sale of the enterprise or its organized part, real estate and movable property, please indicate, and on the date of the declaration of bankruptcy involving liquidation of assets of the bankrupt, the bankrupt loses self-management of the undertaking and has required to deliver all the assets and complete documentation of the receiver. This requirement imposes the provision of Article bankrupt. 57, paragraph 1 of the Law - Bankruptcy and reorganization. Removal of mass Bankruptcy should be the responsibility of the trustee. The trustee is acting in his own name but to the bitter end.Trustee Role

The bankruptcy trustee and serves on the board is authorized to liquidation in bankruptcy by selling its components, recovery of debt and exercise any other rights associated with the liquidation assets of the bankrupt. Liquidation bankruptcy trustee was regulated by the Law.Bankruptcy and Reorganization

This Act is a less special in relation to the standards enshrined in the Civil Code and Commercial Code and the procedural rules contained in Code of Civil Procedure and the Code of Administrative Procedure. In cases related to the liquidation of assets of the bankrupt, not regulated by law - Bankruptcy Law and repair, the provisions of the Code of Civil Procedure. Under the former bankruptcy law, Regulation of the President on 24 October 1934 - Bankruptcy Law (Journal of Laws of 1991 No. 118, item. 512, as amended). Sale of assets of the bankrupt He made the trustee or bailiff acting on a proposal trustee. Sale of movables He made the trustee of a free hand in applying the Code civil matters (Article 535 et seq. Civil Code), or by public auction, which define the mode regulation. Public auction conducted a bailiff or a notary at the request of trustee in bankruptcy.

Selection of sales in accordance with Article 115 and 116 of the Insolvency Law  was dependent on whether the motion had sold fair price or stock exchange or not. In the case of motion with a fair price or stock exchange rule was sold with a free hand sale of other movable property was carried out ...