INSOLVENCY.

Tuapeka Times, Volume VII, Issue 424, 9 January 1875, Page 3

INSOLVENCY.

{To tlie Editor.) '■ Sir, — Having been asked by several persons the following questions re the Insolvency Aot, tiz. : — 1. Can an insolvent hand over his estate without giving due notice to his creditors of his insolvency ? . 2. Can a second party take over an insolvent's estate and compound with insolvent's creditors ? 3. Is it legal for some of the creditors in an insolvent's estate to meet and aportion an insolvent's estate among themselves ? To the first question I decidedly say No. If such were the case, a minority of the creditors •would be placed in a position to sacrifice 'the interests of the majority. Such . a proceeding would be highly illegal. To the second question my reply is, Certainly not. No person, creditor, .or otherwise, can legally compound with thecredifcors in an insolvent estate for the following " reason : If a creditor, such a proceeding would give him an undue advantage over the ofcher creditors, and it is the object of the Act to place all on an equal fooling ; if not a creditor, he would have to be appointed a trustee under the Act, and with the consent of a majority of the creditors. Any single departure from the Act in this respect Would render all proceedings so taken null and void. In reference to the third question, my Mplyis also in the negative. The Act clearly provides against such a course. It would be manifestly unjust. In order to Ipgalise the proceedings necessary to winding up an insolvent's estate, the uttermost publicity within pMeb it xw^esaary. — I am, Ac., "*" BIACISTOKE.