Bankruptcy Forms: Filing Bankruptcy Chapter 7 Bankruptcy Software Chapter 13

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TITLE 11–BANKRUPTCY

CHAPTER 11– REORGANIZATION

Sub Chapter – Officers and Administration

Sec. 1103. Powers and duties of committees

  (a) At a scheduled meeting of a committee appointed under section 
1102 of this title, at which a majority of the members of such committee 
are present, and with the court's approval, such committee may select 
and authorize the employment by such committee of one or more attorneys, 
accountants, or other agents, to represent or perform services for such 
committee.
    (b) An attorney or accountant employed to represent a committee 
appointed under section 1102 of this title may not, while employed by 
such committee, represent any other entity having an adverse interest in 
connection with the case. Representation of one or more creditors of the 
same class as represented by the committee shall not per se constitute 
the representation of an adverse interest.
    (c) A committee appointed under section 1102 of this title may--
        (1) consult with the trustee or debtor in possession concerning 
    the administration of the case;

        (2) investigate the acts, conduct, assets, liabilities, and 
    financial condition of the debtor, the operation of the debtor's 
    business and the desirability of the continuance of such business, 
    and any other matter relevant to the case or to the formulation of a 
    plan;
        (3) participate in the formulation of a plan, advise those 
    represented by such committee of such committee's determinations as 
    to any plan formulated, and collect and file with the court 
    acceptances or rejections of a plan;
        (4) request the appointment of a trustee or examiner under 
    section 1104 of this title; and
        (5) perform such other services as are in the interest of those 
    represented.

    (d) As soon as practicable after the appointment of a committee 
under section 1102 of this title, the trustee shall meet with such 
committee to transact such business as may be necessary and proper.

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2627; Pub. L. 98-353, title III, 
Secs. 324, 500, July 10, 1984, 98 Stat. 358, 384.)


                      Historical and Revision Notes

                        senate report no. 95-989

    This section defines the powers and duties of a committee elected or 
appointed under section 1102.
    Under subsection (a) the committee may, if authorized by the court, 
employ one or more attorneys, accountants, or other agents to represent 
or perform services for the committee. Normally one attorney should 
suffice; more than one may be authorized for good cause. The same 
considerations apply to the services of others, if the need for any at 
all is demonstrated.
    Under subsections (c) and (d) the committee, like any party in 
interest, may confer with the trustee or debtor regarding the 
administration of the estate; may advise the court on the need for a 
trustee under section 1104(b). The committee may investigate matters 
specified in paragraph (2) of subsection (c), but only if authorized by 
the court and if no trustee or examiner is appointed.


                         house report no. 95-595

    Subsection (a) of this section authorizes a committee appointed 
under section 1102 to select and authorize the employment of counsel, 
accountants, or other agents, to represent or perform services for the 
committee. The committee's selection and authorization is subject to the 
court's approval, and may only be done at a meeting of the committee at 
which a majority of its members are present. The subsection provides for 
the employment of more than one attorney. However, this will be the 
exception, and not the rule; cause must be shown to depart from the 
normal standard.
    Subsection (b) requires a committee's counsel to cease 
representation of any other entity in connection with the case after he 
begins to represent the committee. This will prevent the potential of 
severe conflicts of interest.
    Subsection (c) lists a committee's functions in a chapter 11 case. 
The committee may consult with the trustee or debtor in possession 
concerning the administration of the case, may investigate the acts, 
conduct, assets, liabilities and financial condition of the debtor, the 
operation of the debtor's business, and the desirability of the 
continuance of the business, and any other matter relevant to the case 
or to the formulation of a plan. The committee may participate in the 
formulation of a plan, advise those it represents of the committee's 
recommendation with respect to any plan formulated, and collect and file 
acceptances. These will be its most important functions. The committee 
may also determine the need for the appointment of a trustee, if one has 
not previously been appointed, and perform such other services as are in 
the interest of those represented.
    Subsection (d) requires the trustee and each committee to meet as 
soon as practicable after their appointments to transact such business 
as may be necessary and proper.


                               Amendments

    1984--Subsec. (b). Pub. L. 98-353, Secs. 324, 500(a), substituted 
``An attorney or accountant'' for ``A person'', substituted ``entity 
having an adverse interest'' for ``entity'', and inserted provision that 
representation of one or more creditors of the same class as represented 
by the committee shall not per se constitute the representation of an 
adverse interest.
    Subsec. (c)(3). Pub. L. 98-353, Sec. 500(b)(1), substituted 
``determinations'' for ``recommendations'', and ``acceptances or 
rejections'' for ``acceptances''.
    Subsec. (c)(4). Pub. L. 98-353, Sec. 500(b)(2), struck out ``if a 
trustee or examiner, as the case may be, has not previously been 
appointed under this chapter in the case'' after ``section 1104 of this 
title''.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-353 effective with respect to cases filed 90 
days after July 10, 1984, see section 552(a) of Pub. L. 98-353, set out 
as a note under section 101 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 328, 330, 331, 901, 1114 of 
this title.


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Legal Resource Center: United States Code TITLE 11 Filing Bankruptcy Forms Software