OFFICIAL ASSIGNEES.

Wairarapa Age, Volume XXXII, Issue 10293, 22 July 1911, Page 5

OFFICIAL ASSIGNEES.

AND THE BANKRUPTCY ACT.

Same months ago the Masterton Chamlber of Commerce received a circular from the Dannevirke Chamber, suggesting the amendment of the. Bankruptcy Act to enable creditors in a bankrupt estate to appoint private 'assignees irntead of allowing the estate to be administered by Official Assignees. A committee to whom the circular was referred reported favourably on the, proposal, but this report was> traversed by members, and its consideration was deferred for a fuller meeting. At yesterday's meeting of the Council Mr D. Donald moved, "That the present system is better than the one suggested, and that, in the event of an incompetent Deputy Assignee being appointed, the proper ! course would (be for the citizens to I petition for his removal." Mr G. C. 'Summerell seconded the resolution. In doing so he said that those who had experience of private assignments would admit that it was not in any way as satisfactory a*s an administration by an Official Assignee. The treatment of estates 'by Official Assignees in past years had bee'n very satisfactory. There 'had, no doubt, been case® in which ; Official Assignees had made mistakes, ! but they should not condemn the [ whole system on this account. The system of private assignees would | produce worse abuses than existed I at present. . Mr W. B. Chennells stated that, under existing circumstances, when a meeting of creditors was called, | the creditors had the right to appoint I supervisors. Under the arrangement proposed by the Darmevirke Cfoamber, there would be no provision for j supervisors. The Official Assignees at present' had to find a. fidelity ibond. Their accounts had to be audited by a Government auditor. If there were twenty or thirtty estates administered by private assignees, the aiiditoK would have a difficulty in finding the different assignees.

Mr Keith stated that the question was one of principle. The question of machinery could 'be easily arranged. All that was desired was that the creditors should have the power to appoint private assignee® if they thought fit. This did not necessarily mean, that private assignees would .be appointed in cases. He agreed with the resolution df fhe.Dsannevirke Chamber^ ' Mr J. Caselberg thought the matter might be overcome iby the Government appointing only .suitable Assignees. Mr Keith said he could not see what objection there oould be to the proposal of-the Dannevirke Chamber. Mr OhemneHs stated that there would be very great objection. It would go forth from, this Chamber that it was In favour, of private assignees. The motion of Mr Donald was them put and carried on the voice®.