THE INSOLVENCY ACT.

Evening Star, Volume IX, Issue 2680, 19 September 1871, Page 2

THE INSOLVENCY ACT.

‘ (Concluded.) 1 Part 10, Provides for liquidation by a-rangement with creditors. Clause 176 provides the following regulations. 1 —At a meeting of creditors, by extraordinary resolution, it may be determined to liquidate the affairs of a debtor by arrangement ; and, at a subsequent meeting, within a week, appoint a trustee. The meeting must be presided over by a chairman. No creditor is to vote Until, by a statutory declaration, his claim is proved. The resolution must be passed by a majority in number and value. The debtor, except on satisfactory grounds, must be present, and produce a statement of his affairs. The extraordinary resolution must" be presented to the Registrar in Insolvency, accompanied by the statements, of account, and, if satisfied with them and the or committee of inspection, the liquidation by arrangement shall be deemed to have commenced from the date of the appointment of trustee. 'The' remaining provisions equfer, similar. ppWdrs on trustees under arrangement, as;in insolvency. By one sub-section it is'provided that if the Court, On evidence being'given~bya creditor claiming fifty pounds, consider the estate cannst be wound up without undue delay or injustice, it may order the sequestration of the estate. Part ll.— Compositor with Creditors.Clause 177 provides that a debtor without proceedings in insolvency may compound with its creditors in satisfaction of debts owing to them ; on a resolution to that effect passed by three fourths of them -in number and value. The resolution, with a statement of assets and liabilities is then presented to to the Registrar’ and registered, . or it will be of no avail. The provisions of the resolution shall j be. binding on /ill creditors whose names and addresses are shown in the debtor’s statement; at.thp racing at which it was passed. The Court may enforc i the provisions of any composition made under this section on application of a person interested. deuce, it appears that at composition cannot, or ought not to proceed, the Court may order sequestration. ; Part 12.—Offences against the Insolvent Laav and THfcm Punishment Section 178. By this; section, concealing the property of an insolvent is puniahukle By imprisonment wjth jiard Jabpr for a. tenp. not exceeding three years, I orgipg seals or, certificates of the Court, imprisonment for not more than, three years, JSmbezzlemwb of property under attachment, imprisonment not exceeding six months. Receiving property to epable an,insolvent to.^cfraucThis creditors, imp-isbnmeht hot eitce&iing threh years. Inserting false advertisements in the ' New Zealand Gazette or Gazette imprisonment for not more than thiee years. Cre? ditors making false claims with intent to defraud, imprisonment for- not more than three years. 170. The following are punishable offences by debtors : —I. Not fully and truly.giving an account of his estate 2. Not delivering up the whole of his estate to the trustee-. ?, Not giving up books or papers. 4. Concealment of property before or after sequestratration to the amount of ten pounds, or fraudulently removing peoperty to that amount: omitting anything material in the statement of his affairs in examination j not informing a trustee within a month of a false claim being made ; preventing books or papers being produced, which affect his property ; concealing, mutilating, or destroying any document; making false entries in hooka or documents, or fraudulently consents tfl any alteration or parting with necessary documents, attempting to account for any part of his property by statement of fictitious losses or expenses; obtaining property on credit by fraudulent representat ons within four months before sequestration, without paying for it; obtaining under the false pretence of carrying on trade, he pawns, or pledges, or disposes of his property otherwise than in the ordinary way of trade, or is guilty of making false representations for obtaining the consent of his creditors to an arrangement in reference to liquidation of his affairs. ■ For each- of the specified offences the debtor is chargeable with misdemeanour, and is made liable to imprisonment for not more than three years, w»th or without hard labor. ISO.—Provides that a similar punishment is to be awarded to debtors guilty of any of those offences, in cases of composition, absconding with property -or fraudulently obtaining credit. Part 13. Provides for audit of accounts, and makes sundry provisions for contingencies.