Smith & Co and Others v Van Rensburg [1913] ZATPD 8 (7 February 1913)

lnsolvenc - Trustee - Misconduct - Delegation of management and control -  Failure to open banking account - Law 13 of 1895, secs.77, 87, 89 and 91

Failure by a trustee in an insolvent estate to open a banking account or to deposit a large sum of money belonging to the estate into such an account as required by secs.87 and 89 of Law 13 of 1895 is misconduct in the administration of the estate within the meaning of sec.77 of the Insolvency Law.

A person allowed himself to be appointed trustee in an insolvent estate through the instrumentality of a firm of attorneys to whom he then handed over the complete management and control of the estate. He failed to open a banking account on behalf of the estate or to deposit a large sum of money belonging to the estate into such an account and he failed to keep proper books as required by sec.91 of Law 13 of 1895.

Held, that the trustee had been guilty of misconduct in the administration of the estate and should be removed from office under sec.77 of the Insolvency Law.