BANKRUPTCY REFORM.

Poverty Bay Standard, Volume XI, Issue 1306, 10 April 1883, Page 4

BANKRUPTCY REFORM.

The sub-Committee of the Chamber of Commerce, appointed to examine the new Bankruptcy Bill, prepared by the Government for introduction in Parliament next session, have presented a very full and exhaustive report, which was read at yesterday’s meeting of tl.<Chamber. A great part of the report 1. occupied with a earetui comparison between the recommendations of the Conference of Chamber of Commerce delegates, held last J une, and the manner in which these have been emboided in the Ministerial bill, ot in such cases ignored. With reference to the proposed appointment of two special Bankruptcy Judges, the Committee regret that the Government have not adopted the suuggestions. The defects in the existing system are in a great degree defect i of administration, and they fear that there will not be a satisfactory administration if the law until special judges are appointed for bankruptcy without any further funotionr. They aleo regret that the recommendation that a debtor should not, except under special circumstances, be entitled to hi. discharge unless or until hie estate paid 10s in the :E, has not been accepted. The object of i the delegates in making this suggestion, wae | that it might come to be understood to be I the duty of traders to place their affairs bi ! the hands of their creditors as soon as they x i find that their assets represent less than 20e j in the £ of their liabilities, instead of continuing until their assets are still further die- ' sipated. It is submitted that with the sav ’ ing clause provided in see. IG4, no hardship ■or injustice would be likely to occur. The sub-committee further suggests that in clauses ! IGB and 169, the words which make convic- ; tions depend upon a jury being satisfied as ' to the existence of fraudulent intent should i be omitted, as it has been found very difficult to get juries to convict under such dr- * cumstances. The mere fact of the bankrupt having committed the acts specified should be enough to render him liable to punishment, subject to the discretion of the Judge, The committee regret that the proposals were not acted upon—(l) that no debtor be allowed to file who has not £25, worth of assets beyond excepted articles as the present conditions lead to great frauds, as there are some persons who file periodically and put down their assets at £25, or less, in expected articles ; (2) that any undischarged bankrupt getting goods on credit subsequent to hie declaration, and not informing the seller that he is an undischarged bankrupt, and not eventiially paying for such goods, be held guilty of a misdemeanour. They consider that insufficient power is given for the arrest by telegraphic message of absconding debtors. They urge that a debtor who failed to satisfy i the Court that his bankruptcy arose from ! circumstances beyond his control should not I bo allowed to hold any public oftciqljx»lttrm until he had paid » vU -.mumgs in the-pimnd, 1 ncy roar that the provision ; I” tne Government Bill against fraudulent mils of sale may always be evaded by ! passing fictitious cheques, and advocate the adoption of the Victorian plan, They further recommend—(l.) That the security to be given by the assignee should be not less than £5OOO. This would tend to secure a first-class man. (2.) That the , papers of a bankrupt should be open to inspection of any person on payment of a fee. as is the case at present. (3.) Thai a secured creditor should mean a creditor holding security over any property of the debtor) whether given directly or indirectly through another person, (4.) That proxies should be signed before a J.P. (5.) That, in regard to \ leases held by a bankrupt, the landlord or other person interested should be required to give notice to the assignee, calling upon him to exercise his election, as in some cases the assignee might bo ingorant of the existence of a valuable lease. (6.) That the secretary, manager, or other responsible officer of any company, society, or corporation in which the debtor held or was entitled to hold any shares, money, or securities, should, without demand, inform the assignee of the facts, and should hold such shares, money, or securities to the order of the assignee only, (7.) That in eases where the debtor has any reversionary or contingent interest in or towards-*. ■ the realisation of which it should be necess* I ary or advantageous in the Interest of the estate that an insurance should be effected on the life of the debtor, the debtor shall submit to medical examination, give informsation, and do or allow such other things as may be necessary to facilitate such insurI mice, (8.) That the assignee’s commission I should not be chargeable on sums use to pay i off mortgages or other incumbrances, as that I would be tantamount to paying double ; commission on such sum, (8.) That the ; supervisors’ commission should not execd 2J per cent, in all (as rccommauded by the l joint Parliamentary Committee), and father ; that it be reckoned on the net receipts of the estate. On the whole, the Sub-Committee consider that a strong endeavour has been i made by this Bill to meet the wishes of the mercantile community, and they anticipate that it will be found to exercise a j very beneficial effect if it become law,