Re Dare, T.J. Ex parte Dare, T.J

The applicant, Tracy Joy Dare, sought registration as a trustee in bankruptcy. The application was opposed by the Official Trustee in Bankruptcy, raising concerns about the independence required of a trustee under section 165(1)(b) of the Bankruptcy Act 1966 (Cth). The court was required to determine whether the applicant's employment arrangements with a firm of accountants could ensure her independence as a trustee, despite her fees being paid to the employer. The central issue was whether the applicant's independence could be guaranteed, considering that her fees were disbursed to her employer.

The court examined the statutory requirements for trustee independence and the precedents set by previous cases. It considered the applicant's employment contract, which outlined that she would have unrestricted access to her employer's facilities and that the fees paid to the employer would not influence her decisions as a trustee. The court noted that the mere payment of fees to the employer did not necessarily infringe on the independence required by section 165(1)(b). The court found that the applicant's contractual arrangements ensured her independence, as she retained control over her employment terms and could make decisions without interference.

In light of the evidence presented, the court was satisfied that the applicant's arrangements preserved her independence. It ruled that the applicant's employment with the firm of accountants did not contravene the statutory requirements for independence. Consequently, the court ordered that Tracy Joy Dare be registered as a trustee in bankruptcy, subject to her entering into a bond with approved sureties as required by section 155(3) of the Bankruptcy Act 1966 (Cth) and Rule 61(1) of the Bankruptcy Rules. Settlement and entry of orders are governed by Order 36 of the Federal Court Rules.