AN IMPORTANT MEASURE. THE NEW BANKRUPTCY BILL. Wellington, August 26.

Te Aroha News, Volume VII, Issue 397, 28 August 1889, Page 4

AN IMPORTANT MEASURE. THE NEW BANKRUPTCY BILL. Wellington, August 26.

Tjik lengthy Inemorandum attached to this Bill, which has been introduced by the MinisLer for Justice, explains the measure. The Bill is ' mainly a consolidation one, though a great many changes in matters of detail have been introduced. No important change in the system of administration of bankrupt estates is proposed. The Bill as ib stands is very similar to the English Act of 1883. The greater part of the suggestions made during the past year or two by the Chambers of Commerce in the colony have been dealt with in the BUI, and generally in the way desired by the Chambers. A Bpecial provision has been made enabling Resident Magistrates to act as judges in small bankruptcy cases when so empowered by the Government.

IMPORTANT AMENDMENT. In connection with bbc present Act the chief cause for dissatisfaction has arisen in connection v.ith the penal clauses. A nuirbev of offences are punishable on summary conviction, before the bankruptcy judge. The disadvantage of this system, as regards bankrupts, is that the bankrupt has no proper notice of the oftence for which he is to be tried, and therefore has not the same facilities for preparing his defence which an ordinary crimina has. As regards the creditors, the disadvantages are that the judges are reluctant to take upon themselves the duty of instituting the charge of trying without a jury, as it does not seem to be legarded as the duty oE the Assignee to take the responsibility and incur the expense of formulating a a charge. Moreover, no procedure for the summary jurisdiction is provided by the Act. VVhat is proposed by the Bill in regard to these offences is that in the first place it is made the duty of the Assignee to institute proceedings if he thinks an offence has been committed. He is to lay the facts as he thinks they can be proved before the Crown Prosecutor, who may certify that there is a good pi-ima facie case. If he is of that opinion the Assignee will then lay an information and the whole proceedings will be conducted by the Crown offices, as in an ordinary criminal case, all offences being treated as misdemeanours ; that is to say, being indictable, and therefore having to be tried before a judge and jury after a preliminary hearing before justices. The whole expenso of the prosecution, including the preliminary proceedings before the Justices, will have to be borne by the Cro.vn unless the judge directs them to be paid out of the estate. To procect the Assignee it is provided that no action for malicious prosecution shall lie against an Assignee who acts upon a certificate from the Crown Prosecutor. This plan will relieve the creditors from expense and responsibility, while it will give a fraudulent bankrupt the same trial as a man tried for any other kind of crime. It will of course still be open to any creditor fco lay the information for himself. 1 It should be added that provision is made for enabling the justices to deal summarily with any charge if they think fit so to do, and if the person charged consents. In such case no greater term of imprisonment than six months can be imposed. The Act comes into force on January Ist, 1890.

MARRIED WOMEN. Married women are included in the Bill as well as aliens. The inclusion of married women introduces a change of some impox-t-an cc under sub -section 5 of section 3 of fcho Married Women's Property Act, 1884. The only mairied women who can be made bankrupt are married women carrying on a trade or business separately from their husbands. It seems probable that any married woman can herself place herself under the Bankruptcy Act, but as all married women who have property can incur debts, all married women should be capable of being made bankrupt by their creditors, so that their separate property, if any, can be equally divided among their creditors.

OTHER PROVISIONS. The amount of debt necessary for a petitioning creditor is from £50 to £20. Aa in most bankruptcies in New Zealand the amount of the respective debts is comparatively small, it is submitted that this is a desirable change AL present it is considered that if a distress is levied before' bankruptcy it can be completed after bankruptcy, but the present Bill provides to the contrary. Debts incurred after the creditor had notice of an act of bankruptcy are rendered not provable. Voluntary settlements are made absolutely void if made within two years before the bankruptcy, and void if theibankruptcy ensues within five years after the date of the settlement, unless the settler can prove his solvency.

' FRAUDULENT PRACTICES. ' Sub-section 1, clause 79, which I quote afe length, is interesting as dealing with fraudulent practices. "Every conveyance or transfer of property or change thereon made, every payment made, evory obligation incurred, and every judicial proceeding taken or suffered by any person unable to pay his debts as they become due, from his own money in favour of any creditor or any person in trust for any creditor with a 1 view of giving such creditor a preference j over the other creditors, shall, it the person making, taking, paying, or suffering the same is adjudged a bankrupt within three months after the date of I making, taking, paying, or suffering the " I same, be deemed fraudulent and void as .against the Official Assignee. " The Act is a very voluminous one, consisting of 171 besides numerous sub-sections, and carries 62 page's of a •batute book.