MEETING OF CREDITORS.

Auckland Star, Volume XL, Issue 136, 9 June 1909, Page 7

MEETING OF CREDITORS.

On Saturday afternoon the Official Assignee, Mr E. Gerard, held a meeting of the creditors in the Cambridge Courthouse in the estate of Riley and Robertson, bankrupts, formerly contractorsA former meeting had been adjourned to enable the Assignee to take the opinion of the Crown Solicitor as to whether or not a payment made to the Farmers' Co-operative Auctioneering Co., Ltd., had been a -preferential one.

Mr Gerard submitted the opinion of the Crown Prosecutor, which summed up the position as follows: —"The Company did not get the whole of the bankrupts' assets, they didn't know of the banktupts' embarrassed condition, the bankrupts did not know themselves, and the transaction took place before adjudication. Had the transaction been deliberately and intentionally entered into between the parties with a view of leaving money in the hands of the Company so that it might set off its claim, the matter might be different; but there is not the .slightest evidence of such design,—quite the contrary if we are to believe the bankrupts and the Secretary to the Company. Under thpse circumstances I think the transaction is protected." ilr Gerard said the Act certainly requirpd amending; and he incidentally mentioned that he was drafting an Act containing certain amendments that he thought were necessary. There was not the slightest indication that the Company had done anything wrong, and he did not contemplate taking further action.

}lr Clark said he was sure the creditors would not wish any action taken against the bankrupts in face of the opinions read; but the law was an iniquitous one that "tabled bankrupts to sell the whole of their plant without the whole of the creditors participating. Bankrupts had gone about their business in a foolish way, and he moved that before they be granted their discharge, they each be made to pay £40 into the estate.

M> Souter seconded the motion, which he said was very mild, for no doubt the Act had been infringed, the bankrupts not having kept books.

The motion was unanimously agreed to.

Only one of the bankrupts, Riley, was present, and he asked if the Assignee would recommend his individual discharge being granted if he paid the £40?

Mr Gerard said he would recommend it. but he could not bind the Judge to gTant it.

The meeting was then adjourned sine die.