BANKRUPTCY.

Poverty Bay Standard, Volume XI, Issue 1318, 19 June 1883, Page 3

BANKRUPTCY.

The Bankruptcy Bill, of which Sir John Lubbock has obtained the second reading against the vote of the Government, does not purport to reconstitute the bankruptcy law, but merely to introduce a few minor though useful changes into the existing procedure, in case the Governrppnj do.not succeed with their measure this session. Sir John proposes to extend the powers of creditors in several ways in all proceedings in bankruptcy or in liquidation bv arrangement. The first power that the Bill confers on a creditor is that of calling a general meeting of the creditors at any time after the appointment of a trustee, provided that he obtains “ the concurrence of one fourth in value of the creditors, including himself.” In this case, a seven days’ notice would have to be sent to each creditor, and to the trustee, stating the object of the meeting. Another new power is for a creditor who has the same “ concurrence,” to call upon the trustee at any time to furnish a statement of accounts up to date. The trustee can also, under the Bill, be called upon by the creditors, at a general meeting summoned for the purpose, for any explanation* and in formation respecting the property and its administration and management. Moreover, the trustee can be required at any time after thus furnishing accounts and information, to distribute forthwith among the creditors such assets as he may then have in his hands available for distribution. I bis power is given to a majority in value of the creditors. Then, again, a creditor can demand from the trustee, on payment of a small charge, a list of the creditors and of the debts. For failing to perform any of the duties thus imposed on him the trustee is liable te be dismissed by the creditors from his office, and thereupon he is to forfeit all claims to remuneration in re-pect of past services, and is to be liable to pay his successor the expense to which the creditor* may be put through his dismissal.