THE BANKRUPTCY ACT.

Press, Volume XLVIII, Issue 7864, 15 May 1891, Page 5

THE BANKRUPTCY ACT.

SUGGESTED AMENDMENTS. [I-lESS ASSOCIATIOS' T-LEGSAH.] WELLINGTON, May 14. The Chamber of Commerce has framed a number of recommendations for tho amendment of the Bankruptcy Act. Tho principal suggestions are—That a clause Bhould be added providing that every bankrupt shall appear in Court for his discharge within six months of his adjudication, failing which he shall be deemed guilty of contempt of Court; that all persons trading on credit shall keep at least three books of accounts, viz., a cash book, to contain a correct record of all receipts and payments, a day book to contain a correct record of all dealings which shall not have been entered as cash transactions, and a ledger in which all transactions of every description shall be finally recorded; that any bankrupt having failed to keep these books in a fair and reasonable manner shall be deemed guilty of misdemeanour; that having failed or neglected to make out a proper balance sheet showing a statement ot assets and liabilities and profit and loss within thirteen months of h is bankruptcy, he be deemed guilty of misdemeanor; that any resolution of creditors granting a bankrupt his furniture and effects must, if such furniture and effects be of value exceeding £50, be a special resolution; that immediately after the adjudication of any bankrupt it should be the duty of the Official Assignee to have the bankrupt's books and accounts audited; that in valuing securities under section 107 of the Act of 1883 creditors must treat as securities any promissory notes or acceptances of the debtor endorsed by any other person ; that a landlord's preferential claim for rent shall not exceed three months except when the agreed term of payment is at a larger interval, in no case more than six months.