THE BANKRUPTCY LAWS.

South Canterbury Times, Issue 2292, 22 July 1880, Page 2

THE BANKRUPTCY LAWS.

[Bv Tki.kouai’H.]

Wku.ixutox, July 21

The Bankruptcy Law Committee have reported to the House to the following effect : —The committee resolved that an amendment was required in the direction hereinafter indicated, and that the Government he requested to bring in a Bill during the present session embodying the amendments proposed. The committee further resolved that an amendment of the law of bankruptcy should form the subject of a final repori. The committee recommend that the present Debtors and Creditors’ Act be amended in the following respect : —l. That meetings of creditors should be held in the town in which the bankrupt carried on business, or the town nearest his place of residence if the place of residence is not in the town. 2. That an official assignee be appointed by the Government for each Court having jurisdiction in bankruptcy, and that the creditors shall have power to appoint one or more trustees in each estate to act with the official asignee, and to find to the satisfaction of the Judge to meet the salaries ‘and expenses of the official assignee. The committee recommend that the minimum charge of per cent be paid upon all assets that arc brought under the jurisdiction of any Court. B. Any person shall not be entitled to his discharge unless and until a resolution shall have been passed by a majority in number equal to threefourths in value of the creditors, and at a meeting convened for the purpose of considering such resolutions. The majority shall not be a more ma jority of those at the meeting, but the whole body of creditors, so that it will be necessary for the debtor to secure a sufficient attendance of creditors, either in person or by proxy, for the purpose of this provision. A person who lias been scheduled by the debtor as a creditor, but who did not prove, shall be considered as one of the body of creditors, although of course he cannot vote till he has proved. The object will be to make assent to the right of discharge, so that there should be. an actual consent to the discharge by a majority in number equal to three-fourths in value of those persons who are in effect creditors. The decision of the creditors in refusing to give or grant a discharge shall be subject to revision by the Court. 4. That the present mode of arrangement by deed be repealed, and that any debtor unable to meet his engagements be compelled to Jile a declaration to that eifect. That the tiling of such a declaration shall operate to stay all hostile proceedings against the estate until the creditors have determined whether the estate shall be wound up by a trustee or in bankruptcy, and that the assent required to the release of (ho creditor be three-fourths in number and value of all creditors, whether present or not. 5. That no bankrupt shall obtain his discharge except by order of the Judges of the Supremo Court or District Court, in open Court.