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Bankruptcy: payment of dividends


Dividends arc payable by the trustee. The first dividend is payable four months after the first meeting of the creditors, subsequent dividends at six-monthly intervals. The committee of inspection can authorize postponement. When a dividend is to be paid, the trustee must notify the Department of Trade and Industry and every creditor in the statement of affairs who has not yet proved his debts. The notice must give the last day for receiving proofs. The trustee must reject proofs within fourteen days if he intends to reject them at all. When the dividend is paid the trustee must notify the Department of Trade and Industry, also submitting a list of proofs filed with the trustee. The Department of Trade and Industry will publish the dividend in the London Gazette. Each creditor who has proved must receive notice together with a statement of the condition of the estate. A final dividend is paid when the trustee has got in all the property he can without needlessly protracting the bankruptcy. Before declaring the dividend he must notify all creditors whose proofs have not been admitted.

Reference: The Penguin Business Dictionary, 3rd edt.