THE BANKRUPTCY LAWS.

Inangahua Times, Volume II, 6 August 1880, Page 2

THE BANKRUPTCY LAWS.

The following is the report of the Bankruptcy Law Committee to the House :— The committee resolved that an amend* ment was required in the direction here* inafter indicated, and that the Govern* ment be requested to bring in a Bill during the present session embodying the amendments proposed. The oommittee further resolved that an amendment of the, law of bankruptcy sbould form the subject of a final report. The committee recommend that the present Debtors and Creditors Act be amended in tbe following respeot :— l. That meetings of creditors should be held in the town in which the bankrupt carried on- bnsiness, or the town nearest his plaoe of residence if the place of residence is not in the town, 2, That an official assignee bo appointed by the Government for each Court having jurisdiction in bankruptcy, and that the creditors shall hare power to appoint one or more trustees in each estate to act with the official assignee, and to security to the satisfaction of tho Judge to meet the salaries and expenses of tho official assignees, the committee recommend

that the minimum charge of — per cent, be paid upon all assets that are brought under the jurisdiction of any Court. 3. Any person shall not be entitled to his discharge unless and until a resolution shall haye been passed by a majority in number equal to thrOesfourths in value of the creditors, and at a meeting convened for the purpose of considering such resos lutions. The majority shall not be a mere majority of those at the meeting, but of the whole body of creditors, so that it will be necessary for the debtor to secure a sufficient attendance of creditors, either in person or by proxy, for tbe purpose of this provision. A person who has been schoduled by the debtor as a creditor, but who did not prove, shall be considered as one of the body of crcdi. tors, although of course he cannot vote till he has proved. The object will be to make assent to the right of discharge, so that there shall be an actual consent to the discharge by a majority in number equal to three-fourths in value of those persons who are in effect creditors. The decision of the creditors in refusing to give or grant a discbarge shall be subject to revision by tbe Court. 4. That the present mode of arrangement by deed be repealed, and that any debtor unable to meet bis engagements be compelled to file a declaration to tbat effect. That tbe filling of such a declaration shall operate to stay all hostile proceedings against the estate until the creditors bave deter' mined whether the estate shall be wound up by a trustee or in bankruptcy, and . that the assent required to the release of the creditor be three-fourths in number and value of all creditors, whether present or not. 6. That no bankrupt shall obtain bis discharge except by order of the Judges of the Supreme Court or Distriot Court, in open Court.