BANKRUPTCY ACT.

Press, Volume LXIV, Issue 19202, 7 January 1928, Page 15

BANKRUPTCY ACT.

MINISTER EXPLAINS NEW SECTION.

[THE PBESS Special Service.]

WELLINGTON, January 6.

Despite a direct statement bearing upon the matter made by the AttorneyGeneral in Parliament in regard to one of the provisions of the Bankruptcy Amendment Act passed last session, misinterpretations are being placed upon the meaning and intention of the section as a result of a different construction read into it in the Legislative Council. The section in question (Section 7) is that prohibiting the publication of reports of the examination of a bankrupt before an Official Assignee. One authoritative reading of the provision is that it applies only to meetings of creditors presided over by the Official Assignee. In reply to a question this morning the Attorney-General (Mr Eolleston) explained that this was not a correct reading of the section, nor was it the intention of the amendment. "The section," he said, "does not apply to meetings of creditors, but only to special examinations of bankrupts by the Assignee for the special purpose of gaining information from the bankrupt or any other party in regard to the bankrupt's affairs. It is specially designed to prevent the publication of the business transactions of other people who have had dealings with the bankrupt." Mr Eolleston explained that the reporting of the proceedings of meetings of creditors remains as before, and that it is competent for all such proceedings', including the statement of the bankrupt, to be published.