NO QUORUM.

Auckland Star, Volume LVI, Issue 65, 18 March 1925, Page 8

NO QUORUM.

■ BANKRUPTCY "MEETING LAPSES. A point which cropped up at a bankruptcy meeting this morning was whether in the absence of a quorum of creditors a bankrupt could be submitted to examination. The bankrupt was William Sands, senior, farmer, of Otaua near Waiuku, and for whom Mr. A Hanna appeared. Bankrupt's schedule showed £4083 2/1 owing to unsecured creditors, and £2985 5/8 to secured creditors, Avhile the estimated value of •securities was estimated at £3048. Assets were put down as book debts £23 11/1, surplus from securities over secured creditors £62 14/4, and an indemnity in a farm property of £1150, making the total assets £1236 5/5. AVhen the meeting wa-s called this morning, it was found there was not a quorum present, and the Official Assignee (Mr. W. S. Fisher) remarked that if any business Avas done, no resolution could be passed. Mr. Chalmers, representing the principal creditor, quoted a section of the Bankruptcy Act, and contended that power was given to examine a bankrupt at such a meeting as the one this morning. Mr. Fisher: But this does not constitute a meeting. Bankrupts have been examined, but then only with the consent of their solicitor. If the solicitor objects, and in this case he does, I have no poAver to examine the bankrupt. Mr. Chalmers: That is your decision? Mr. Fisher: Yes. There can be no other if his solicitor' objects. There are not sufficient proved creditors to form a quorum, and therefore there is no real meeting. The meeting then lapsed.