(4) it appears that he has, by reason of any other direct or indirect relationship to, connection with, or interest in the debtor or such underwriter, or for any reason an interest materially adverse to the interests of any class of creditors or stockholders. There was no corresponding provision in section 77B.

Sec. 159. (11 U.S.C. § 559.) Termination of Trustee's Appointment or Debtor's Possession

Where the indebtedness of a debtor is less than $250,000, the judge may at any time terminate the appointment of a trustee and restore the debtor to the possession of its property, or, if the debtor has been continued in possession, terminate its possession and appoint a trustee.

Derived in part from section 77B c(1). See note to section 156.

Sec. 160. (11 U.S.C. § 560.)

Appointment of Additional Trus

tees; Removal and Substitution of Trustees

In any case, the judge at any time, without or upon cause shown, may appoint additional trustees or remove trustees and appoint substitute trustees.

Derived in part from section 77B c(1), which gave the judge the power, at a hearing held after notice to creditors and stockholders, to "appoint a substitute trustee or trustees, and an additional trustee or trustees."

Sec. 161. (11 U.S.C. § 561.)

Hearing; Time and Notice

The judge shall fix a time of hearing, to be held not less than thirty days and not more than sixty days after the approval of the petition, of which hearing at least thirty days' notice shall be given by mail to the creditors, stockholders, indenture trustees, the Securities and Exchange Commission and such other persons as the judge may designate, and, if directed by the judge, by publication in such newspaper or newspapers of general circulation as the judge may designate.

Derived from section 77B c(1), which provided that the judge, after having temporarily continued the debtor in possession or appointed a trustee or trustees, “shall require the debtor or such trustee or trustees, if appointed, to give such notice as the order may direct to creditors and stockholders and to cause publication thereof to be made at least once a week for two successive weeks of a hearing to be held within thirty days after such appointment, or, if no such appointment, within thirty days after the approval of the petition or answer ." The present section puts the duty of fixing the time of meeting directly upon the judge. Publication is now left to his discretion.

Sec. 162. (11 U.S.C. § 562.) Same; Objections to Trustee or

Possession of Debtor

At the hearing required by section 161 of this Act, or at any adjournment thereof, or, upon application, at any other time, the judge may hear objections to the continuance of the debtor in

possession, or to the retention in office of a trustee upon the ground that he is not qualified or not disinterested as provided in section 158 of this Act.

Based upon section 77B c(1), which stated that at the hearing there provided "or [at] any adjournment thereof, or at any subsequent hearing after notice, the judge may make permanent any such appointment, or terminate it and restore the debtor to possession, or, if no trustee has been appointed, may appoint a trustee or trustees, and may remove any such trustee or trustees and continue the debtor in possession

Sec. 163. (11 U.S.C. § 563.) Schedules; Debtor Continued in Possession

Upon the approval of a petition, where the debtor is continued in possession, the debtor shall, at the expense of the estate, prepare, make oath to, and file in court, within such time as the court shall fix

(1) a schedule of its property, showing the location, quantity, and money value thereof;

(2) a schedule of its creditors of each class, showing the amounts and character of their claims and securities and, so far as known, the name and post-office address or place of business of each creditor; and

(3) a schedule of its stockholders of each class showing the number and kind of shares registered in the name of each stockholder, and the last-known post-office address or place of business of each stockholder.

Derived from section 77B c, which stated: "the judge (4) shall require the debtor, or the trustee or trustees if appointed, at such time or times as the judge may direct, and in lieu of the schedules required by section 7 of this Act, to file such schedules and submit such other information as may be necessary to disclose the conduct of the debtor's affairs and the fairness of any proposed plan; and may direct the debtor, or the trustee or trustees if appointed, to prepare (a) a list of all known bondholders and creditors of, or claimants against, the debtor or its property, and the amounts and character of their debts, claims, and securities, and the last known post-office address or place of business of each creditor or claimant, and (b) a list of the stockholders of each class of the debtor, with the last known postoffice address or place of business of each, which lists shall be open to the inspection of any creditor or stockholder of the debtor, during reasonable business hours, upon application to the debtor, or to the trustee or trustees, if appointed, and the contents of such lists shall not constitute admissions by the debtor or the trustees in a proceeding under this section or otherwise." The present section makes the filing of schedules by the debtor mandatory where the debtor remains in possession. There is no reason why the debtor's sworn schedules should not be taken to report facts, so the provision that they shall not constitute admissions was omitted.

Sec. 164. (11 U.S.C. § 564.) Same; Debtor Not Continued in

Possession

Upon the approval of a petition, where a debtor is not continued in possession, the court shall fix a time within which the

trustee shall prepare and file in court a list of the creditors of each class, showing the amounts and character of their claims and securities and, so far as known, the name and the post-office address or place of business of each creditor; and a list of the debtor's stockholders of each class, showing the number and kind of shares registered in the name of each stockholder and the last-known post-office address or place of business of each stockholder.

Based upon section 77B c(4), quoted under section 163 supra.

Sec. 165. (11 U.S.C. § 565.) Information of Third Persons as to Security Holders

If in any case it appears that a person, other than the debtor or its trustee, has in his possession or under his control a list of security holders of the debtor or information in respect to their names, addresses, or the securities held by any of them, and such list or information is necessary in order to disclose the names and addresses of the beneficial owners of such securities, or to prepare or complete the schedules required to be filed under section 163 of this Act or the lists required to be filed under section 164 of this Act, the court shall direct such person, after a hearing upon notice to him, to produce such list or a true and correct copy thereof, or to furnish such information, or to permit the inspection or use thereof, as may be deemed by the court necessary for the foregoing purposes.

There was no corresponding provision in section 77B.

Sec. 166. (11 U.S.C. § 566.)

Impounding Schedules, Lists,

Copies, or Information; Inspection or Use The court may, upon cause shown, direct the impounding of the schedules, lists, copies, or information filed under sections 163, 164, and 165 of this Act, but shall permit their inspection or use by the trustee, any indenture trustee or any creditor or stockholder upon such terms as the court may prescribe: Provided, That the court may refuse to permit such inspection by any creditor or stockholder who acquired his claim or stock within three months preceding the filing of the petition under this chapter or during the pendency of the proceeding.

An expansion of section 77B c(4), quoted under section 163 supra. Sec. 167. (11 U.S.C. § 567.) Powers and Duties; Trustee The trustee upon his appointment and qualification—

(1) shall, if the judge shall so direct, forthwith investigate the acts, conduct, property, liabilities, and financial condition of the debtor, the operation of its business and the desirability of the continuance thereof, and any other matter relevant to the proceeding or to the formulation of a plan, and report thereon to the judge;

(2) may, if the judge shall so direct, examine the directors and officers of the debtor and any other witnesses concerning the foregoing matters or any of them;

(3) shall report to the judge any facts ascertained by him pertaining to fraud, misconduct, mismanagement and irregularities, and to any causes of action available to the estate;

(4) may, subject to the approval of the judge, employ such person or persons as the judge may deem necessary for the purpose of assisting the trustee in performing the duties imposed upon him under this chapter;

(5) shall, at the earliest date practicable, prepare and submit a brief statement of his investigation of the property, liabilities, and financial condition of the debtor, the operation of its business and the desirability of the continuance thereof, in such form and manner as the judge may direct, to the creditors, stockholders, indenture trustees, the Securities and Exchange Commission, and such other persons as the judge may designate; and

(6) shall give notice to the creditors and stockholders that they may submit to him suggestions for the formulation of a plan, or proposals in the form of plans, within a time therein named.

(1) corresponds to the "other information" to be elicited under section 77B c (4). Otherwise section 77B contained no corresponding provisions. (3) Analogous to section 77c(9), as amended in 1935.

(6) The use of the trustee as a clearing agent and if possible the originator of plans is one of the most distinctive innovations of Chapter X.

Sec. 168. (11 U.S.C. § 568.) Same; Disinterested Person Where Debtor is in Possession

If a debtor is continued in possession, the judge may at any time appoint a disinterested person as examiner to prepare and file a plan and to perform the duties imposed upon a trustee under paragraphs (1) to (5), inclusive, of section 167 of this Act, or to perform any of such duties.

There was no corresponding provision in section 77B.

Sec. 169. (11 U.S.C. § 569.) Preparation, Filing, and Hearing on Plan; Trustee Appointed

Where a trustee has been appointed the judge shall fix a time within which the trustee shall prepare and file a plan, or a report of his reasons why a plan cannot be effected, and shall fix a subsequent time for a hearing on such plan or report and for the consideration of any objections which may be made or of such amendments or plans as may be proposed by the debtor or by any creditor or stockholder.

Cf. section 77B d, which read: "A plan of reorganization which has been approved by creditors of the debtor, whose claims would be affected by the plan, being not less than 25 per centum in amount of any class of creditors, and not less than 10 per centum in amount of all the claims against the debtor, or, if the debtor is not found by the judge to be insolvent, but is found unable to meet its debts as they mature, by stockholders whose interests would be affected by the plan, provided said amount is not less than 10 per centum of any class of stock outstanding and not less than 5 per centum of the total number of shares of all classes of stock outstanding, may be proposed by any creditor or by any stockholder, or without such approval by the debtor, at a hearing duly noticed for its consideration or for the consideration of any other plan of reorganization similarly proposed." The present section places on the trustee the primary responsibility for the submission of a plan to the court.

Sec. 170. (11 U.S.C. § 570.) Same; Debtor Continued in Possession

Where a debtor is continued in possession, a plan or plans may be filed, within a time fixed by the judge

(1) by the debtor;

(2) by any creditor or indenture trustee;

(3) by any stockholder, if the debtor is not found to be insolvent;

(4) by the examiner, if so directed by the judge. The judge shall fix a subsequent time for a hearing on such plans and for the consideration of any objections or amendments thereto.

Provision for retention of the debtor in possession in small cases was not found in the Chandler Bill as introduced April 15, 1937, H.R. 6439, section 12 II d(1). This was introduced in the Judiciary Committee of the House of Representatives. Section 170 was a necessary corollary to the change. The minimum percentage limitations of section 77B d on the proposal of plans are not retained in this section.

Sec. 171. (11 U.S.C. § 571.) Notice and Time of Hearing on Plan

Notice of the time of any hearing, as provided in section 169 or section 170 of this Act, shall be given to the debtor, the creditors and stockholders, the indenture trustees, the Secretary of the Treasury, the Securities and Exchange Commission, and such other persons as the court may designate. The judge may, upon the application of the trustee, any creditor, indenture trustee, or stockholder, advance the time of such hearing.

The last part of section 77B d (see section 169 note) provided that the hearing on the plan should be "duly noticed."

Sec. 172. (11 U.S.C. § 572.) Submission of Plans to Securities and Exchange Commission for Report

After the hearing, as provided in section 169 or section 170 of this Act, and before the approval of any plan, as provided in section 174 of this Act, the judge may, if the scheduled indebted