DEBTORS AND CREDITORS ACT.

Evening Star, Issue 4098, 15 April 1876, Page 3

DEBTORS AND CREDITORS ACT.

At a recent meeting of the Wellington Chamber of Commerce, Mr D. T. Stewart read a paper showing the defects of the Debtors and Creditors Act of last session He considered that the great defect of the Act was in the 2oth section, which provided that if a meeting of creditors determined that an. estate should not be liquidated, and declined to take advantage of the provisions of the Act, the debtor and his property should be in the same position as if no proceedings had been taken under the Act. He also showed that under clause 9 of section 28 it required a majority of number and three quarters in value of the

creditors to pass any resolution. He instanced a suppositious case, in which a liquidation resolution was before a meeting composed of fifteen persons. Fourteen of the creditors wished to place the debtor’s estate in liquidation, but the fifteenth person, being the largest creditor, successfully opposed it. In that case they had the requisite majority in nnmber, but not in value, and the claim of the fifteenth man was equal in value to that of all the other fourteen; and one individual was thus enabled to override the wishes of fourteen The large creditor could then (the liquidation resolution not having been carried) enter an action, obtain judgment, sell the debtor’s property at a ruinous price satisfy his own claims out of the proceeds' and leave the others to look out for themselves. But even the debtor was not yet done with, for any property he acquired m the future could be seized by his credi tors. Mr Stewart found many other defects m hte pointed out. He moved ~~ That the Committee of this Chamber bo requested to examine into and report to the Chamber unon the working of the Debtors aud Creditors Act, loVo, and ougihewto „ consi^ necessary, amendments