THE BANKRUPTCY LAW

Taranaki Daily News, Volume LVII, Issue 23, 17 June 1914, Page 3

THE BANKRUPTCY LAW

CHANGE OF THE SYSTEM ADVO CATED.

By Telegraph—Press Association. Wellington, Monday.

[ Some time ago a committee, of the I Council of the Wellington Central Cham- ; ber of Commerce was set up to consider the question of amending the Bankruptcy Act. The report of the committee was presented at to-day's meeting of the Council, and it contained tha following recommendations: — "That it be a recommendation to the Council that a conference in connection with the Bankruptcy Act be arranged /With the Wellington Chamber of Commerce, the New Zealand Society of Accountants, and the Incorporated Institute of Accountants of New Zealand, with a view to taking joint action throughout New Zealand to urge on the Government to amend the Bankruptcy Act on lines recommended by the 1909 conference of the New Zealand Chambers of Commerce. The recommendations referred to, and passed by the 1909 conference, are : (1J That an amendment of the existing bankruptcy law is necessary; (2) that a system providing for a central control of all insolvency business is of fundamental importance; (3) that the present limited number of Official Assignees and their deputies should be replaced by approved and registered trade assignees, who shall have statutory powers and be subject to the central I control mentioned above; (4) that in ' the interests of commercial mortality and for the purpose of record, it is desirable that all assignments for the benefit of creditors and insolvencies should be registered, and that a complete record be kept at the central point of * control; that where a debtor resides in one part of the Dominion and absconds, the creditors may file a petition in that portion of the Dominion where he .resides; that public examinations be ulone away, with, and statements made at the examinations before the Assignee used for all purposes. (5) That it is desirable that the penal clauses of the Act should specifically name such books of account as shall lie considered an irreducible minimum for. any person to keep; that the penal seer Hon of the. Act should include offences,' •irrespective of whether the debtor was made bankrupt or not. (G) That the landlord's preferential claim for rent be abolished or reduced i I to a lesser period. ' (7) That insolvent estates of deceased persons be administered by the officers administering tlic bankruptcy laws and not by the Public Trustee. (8) That the costs of bringing an absconding debtor back to New Zealand be borne by the Crown, the estate to j bear an added amount in such cases. Mr. Leigh Hunt sajd that if the CovI ernment gave effect to the recommendations, the Official Assignee's Department Would be abolished. In a city like TVel■lington about two dozen trade assignees ) Would be appointed, each in a particular line of business. The Official Assignee Was now "Jack of All Trades, and ter of None." At present trade assignees Were under no obligation to submit a balance-sheet. The recommendations were adopted.