BANKRUPTCY LAWS.

Globe, Volume XXII, Issue 2032, 28 August 1880, Page 4

BANKRUPTCY LAWS.

i FHOil OTJB OWN COBBKSPONDBNT.] WELLINGTON, August 26. The final report of the Committee on the Bankruptcy Laws is just out. The Committee are satisfied that the laws in foree in the colony are unsatisfactory and open to grave abuse and productive of much injustice. They believe that no Bankruptcy Law will prove satisfactory unless based on the following principles—(a) That on a debtor finding that he is unable to meet his liabilities in full, all his property should be immediately placed under the control of his creditors. _ (b) That such property should be realised with all convenient speed, and the nett proceeds distributed pro rata amongst the creditors, provision being made for the payment of certain preferential claims in full, (c) That a debtor who has acted honestly is entitled to immediate discharge from his creditors, (d) That a debtor who has been guilty of fraud should be prosecuted as a criminal, (e) That the legal proceedings to attain these ends should be of a simple and inexpensive oharaoter, consistent with efficiency. The Committee believe that no new law should be passed which is not intended to be final. In addition to tfce above suggestions the Committee report that they recommend that all judicial duties, such as granting adjudications, dischargee, &c, be performed by Judges of the Supreme Court or District Courts. An official assignee shall be appointed by the Government in connection with each Court, every suoh assignee to find ample security for the due discharge of his duties. Creditors should have power to appoint one or two trustees to act along with the assignee, and the trustee should be bound to pay all monies to a separate trust

bank aooount in the particular estate, and should, under no circumstances, be allowed to use suoh monies for purposes other than connected with the estate. No deed of agreement ahould be entered into except under bankruptcy, and only with oonsent of threefourths in value of all the oreditors. Provisions relating to property in the reputed ownership of the debtor should be abolished. A landlord should rank preferentially for rent not exceeding six months vp to the date of bankruptcy. The provisions of the recent statute in regard to future acquired property should be introduced. No bill of sale should be of any avail against a trustee in bankruptcy if executed within aix months of the date of bankruptcy, except to the" extent of a bona fide present advance. Judges of the Supreme Court should have power to determine questions of fraudulent preference, and also on the examination of a debtor commit him for trial without any other preliminary proceedings being taken. The committeo are of opinion that a Judge of the Supreme Court, and perhaps District Court, should have power summarily to sentence to imprisonment for any term not exceeding twtlve months, with or without hard labor, any debtor who (after full opportunity of de fence) hes been proved guilty of fraud or other misconduot. The committee thinks that without suoh a provision no great improvement in commercial morality can be looked for. There is a well known and natural reluotance with juries to conviot for offences against the bankruptcy laws.