THE LAW OF BANKRUPTCY

Evening Post, Volume XILI, Issue 113, 14 May 1891, Page 3

THE LA W OF BANKRUPTCY

SUGGESTIONS BY THE CHAMBER OP COMMERCE. The authorities of the Welliu<?ton Chamber of Commerce have lately had under conRideration the circular from tho Justice Departmont rr questing that suggestions ehonld bo offorcd by tho various Chirabera of tho colony as to amendments in the law relating to bankruptcy. Iho Bill whioh they woro asked to deal with is a general consolidation measure, with some amendments. A series of rooommendationa have been framed and forwarded to the Government. They are nubstantially such provisions as were Buggmted by tho Chamber in 1887 to the Government then in power and were not incorporated in their 1< gialation. The Chief features recommended are :— That a olauso be added providing that every bankrupt ahull appeir in Court for bia dißcliirge within six months of his adjudication, failing whioh ho shall be deemed guilty of contempt of Court. That all persons trading on credit shall keep at least threo > books of account— viz. . ciwhbook, to contain a oorroot record of all receipt i and pijtnents; day book, to contain a correct record of all doolingg whioh shall not have been entered as oash trmsactionii ; and ledger, in whioh all transactions of every description shall be finally reoorded. That city bankrupt having failed to keep these books in a fair and reasonable manner shall be deomed guilty of a misdemeanour. That having failed, omitted, or neglected to make out a proper balance-sheet, showing a statement of assets and liabilities and profit and loss, within thirteen months of bankruptcy, bo deemed a misdemeanour. That any resolution of creditors, granting a bankrupt his furniture and effeots, must, if suoh furniture and effeots bo of a value exceeding £50, be a Bpeoial resolution. That immediately after the adjudication of any bankrupt it should be Iho duty of tho Official Assignee to have the bankrupt's books and accounts audited. That in valuing securities under section 107 of tbe Aot of 1883, creditors must treat as securities any promissory notci or acaoptanoei of the debtor endorsed by any other peraon. That tho landlord's preferential olairr for rent shall not excerd three months, • . >pt when tho agreed term of payment is f.t a longer interval; in no case more than six months.