THE BANKRUPTCY LAW.

Dominion, Volume 1, Issue 282, 22 August 1908, Page 11

THE BANKRUPTCY LAW.

PETITION TO PARLIAMENT. (HI TBtEQUAPH.—SI'ECIAI. COUBESI'ONDEKT.) Auckland, August' 21. A petition to Parliament is being promoted by the Auckland Chamber of Commerce, and business firms in the city aro to bo asked to append their signatures. The petition is one praying for amendments in tho Bankruptcy Act, and sets out that tho Act should be remodelled so that while insolvents as at present should receive every protection when thoir conduct is bona-fidc, the general, publio and the commercial community should have thoir interests safeguarded, and bo afforded adequato protection against dishonest traders and insolvents. Tho petition suggests that a commission composed of tho senior official assignee in tho Dominion,' with ■ two leading merchants and a similar number of experienced, accountants, should be sot up for tho purposo of taking evidence during tho Parliamentary recess to ascertain in what respccts tho Act is dofectivo.' Since tho passing of the Act in 1892 thero has been' a very largo increase in the population of tho Dominion, and a corresponding advance of trade, and the Act now fails, it is pointed out, to meet the altered conditions of trade and business generally. .That the Act is not considered satisfactory is also proved by the large and increasing number of private assignments to creditors' trustees. In tho courso of the petition a readjustment of boundaries of the districts for which official assignees wero appointed, and an increase in tho number' af the districts are urged. Owing to' tho difficult legal and commercial questions constantly arising in the administration of estates, the remuneration of tho official assignees and deputies should be by fixed salaries, the present uncertain income not proving sufficiently attractivo for firstclass men to accept'the subordinate positions. Tho time has also arrived, it is contended, for tho "appointment of ono or moro judges to attend solely to bankruptcy business. Provision should ho made securing to creditors their proportionate sharo of an insolvent's estate, and preventing ono or more creditors from obtaining an unfair advantage over tho others. The petition also asks that estates in tho hands of tho public trusteo should ho handed over to tho official assignee immediately tlioy are found to bo insolvent, as tho public trustee has not tho samo facilities for dealing with such estates as tho assignee, nor are the creditors' wishes consulted; and that assignments of estates to creditors trustees should be registered. The petitioners consider it unreasonable that the creditors should be compelled to pay the expenses of the extradition of a bankrupt. Tho petition was laid before the Chamber of Commerce yesterday, and it was resolved that it should be signed by the President a|id sent round to business firms for signature, and also to other Chambers of Com* mcrco throughout the Dominion.