The Evening Star FRIDAY, AUGUST 27, 1875.

Evening Star, Issue 3903, 27 August 1875, Page 2

The Evening Star FRIDAY, AUGUST 27, 1875.

The tedious proceedings in regard to the Abolition Bill appear likely to withdraw attention from measures more immediately connected with everyday interests. Were the division taken to-night, we have no doubt the result would be the same, with the exception of Mr Stout's vote, as if taken last week. In the meantime a Bill is before Parliament affecting the relations of debtor and creditor that is of far more consequence in its social aspect than shifting the responsibility of Constitutional Government from Provincial Councils to the General Assembly. The Debtors and Creditors Bill proposes to repeal the Bankruptcy Act, 1807, the Bankruptcy Act Amendment Acts of 1868, 1870, and 1874, and to substitute for them that now before Parliament. It contains 109 clauses, the first of which may be considered as explanatory of its scope and intention. The three give jurisdiction in insolvency and bankruptcy to the Supreme and District Courts, place the trustees in bankruptcy or liquidation under their control, confer power to award costs, and provide for the swearing of affidavits and declarations. The five clauses—from 12 to 16, both inclusive—give power nf it j.peal to debtors and creditors against resolutions passed at meetings of creditors. During the progress of the appeal proceedings, the estate is vested in the trustee. Appeal may be made from District Courts to the Supreme Court, and if the liquidation resolution has been filed in the Supreme Court to the Court of Appeal—the decision in both cases to be final. Rules for conducting pro-, ceedings in bankruptcy are to be framed or altered by the Governor in Council and the Chief Justice of the Supreme Court.

In order " to obtain a liquidation," an insolvent debtor may summon a first meeting of his creditors by notice in the ' Gazette,' copies of which must be forwarded by the debtor to each credicor; or a single creditor to the amount of fifty pounds, or two or more creditors whose aggregate claims equal not less than that sum, may summon a first meeting, provided the debtor has made an assignment of his property for the benefit of his creditors, made a conveyance or gift of his property for the purpose of defeating or delaying payments of debts, or fraudulently transferred or conveyed the

whole or e.tiy pa.rt of it; or if the debtor has left or remained out of New Zealand, or left his dwelling-house, or absented himself from his usual place of residence, "or to keep house" with intent to delay or defeat his creditors ; or has neglected to pav or make arrairy ;i;:nts for a sum duel to a creditor foi seven days after having been served wit l , hj writ.ttu noticeiu the »*iaimer prescr : vd by the Act; or where oxecutiov- for payment onot less than fife" has been followed by seizn ; -w. sale; or where execution or process ' i_ ued on a decree or order of Court/i -..-vor of any creditor has not been satisfied in whole or part—two or wm, e executions for an aggregate ainounc of fifty pounds to be reckoned as on-:.-I>. the purposes of the. Act. If a is called by creditors, the debtor is to receive notice of the time and place of meeting; but if absent from the 001-niy with intent to delay or defeat a;.; creditors, on obtaining leave from the Court, and in terms pi-escribed by ii,. the meeting may proceed. By the 21*: clause, one or more ! partners of a finv '< Kl y be summoned to attend a creditor:}' meeting without including the others.

By the 23rd ehtuse, by resolution, creditors can name one or more trustees for liquidating the estate under the Act, and should they decide that the estate shall not be liquidated, matters remain in statu qw ante, so far as the debtor and his estate are concerned. The debtor is required to attend and give explanations at meetings of creditors. The liquidation resolution, the names of trustees, and a statement of assets and liabilities of the debtor are required to be forwarded to the Registrar of the district, who is to file a notice in the 'Gazette' that they have been filed as prescribed : the cost to be paid out of the debtor's estate. The 26th clause contains regulations for meetings of creditors. The meeting is to elect its chairman. To enable a creditor to vote ho must prove his debt, which must not be an unliquidated or contingent debt or one the value of which "is not ascertained." A secured creditor is only to be considered as entitled to claim for the balance due after deducting the security. He will be at liberty, however, to give up his seen vity to the trustee, and then may claim for the full amount due to him, or he may sell the security to the trustee, who is empowered to purchase for the benefit of the creditors. The I definition of a secured creditor is one holding a mortgage, charge, or lien on the estate, or ; uy part of it, of a debtor. I Proxies are a'h'.ved in voting at creditors' meetin: v \esolutions of creditors are to be decided by majorities in value, and a ••.solution requires to be passed by u j, ; .jv >-ity in numbers and three-fourths oi he value of creditors' claims. .• i.stees may summon general meetings of creditors. It is provided that a 'liquidation resolution" shall be de:med to be passed, if passed in the manner prescribed for passing " speci.J resolutions," one-half of the whole number of creditors having voted thereat. Two clear days' notice of every first meeting is to be gazetted. We will continue this subject.