Section 12 Powers of the Inspector-General in Bankruptcy

Under section 12 of the Bankruptcy Act 1966 (the Act) the Inspector-General in Bankruptcy may conduct inquiries and investigations in relation to administrations under the Act, the conduct of practitioners, the conduct of debtors and alleged offences.

In so doing, the Inspector-General may require the production of books and records by a practitioner, or the provision of a report, or the answering of an inquiry by a practitioner.

Trustees and administrators are required to comply with such requests and a failure to do so, may result in disciplinary action.

Disciplinary action may include the issue of a reprimand, the issue of a show cause notice, a formal direction to produce information under s.40-5 of Schedule 2 to the Act (in the case of trustees), or the imposition of a condition on registration (Registered Debt Agreement Administrators).