BANKRUPTCY LAW

Evening Post, Volume CIV, Issue 37, 12 August 1927, Page 8

BANKRUPTCY LAW

THE AMENDING BILL

VIEWS OF COMMERCIAL T&BS

The proposed amendments to th» Bankruptcy Act, at present before Parliament, have, been considered by tht Legislation Committee of the Wellington Chamber of Commerce, and a report dealing with the matter was approved at a recent meeting of tka Chamber. After recording that several recommendations from the Wellington Chamber have been incorporated in th* Bill, the committee proceeds to express its opinion on various clauses.

In regard to ,the .clause, prohibitingthe publication of a report of the exam* jnation of a bankrupt without the con* sent of the Court or the Assignee, th» committee expresses the view that th» onus should be on the bankrupt or his legal adviser to apply for an order for the prohibition of publication. The committee is of the opinion that th» time giyen to the Official Assignee to disclaim onerous property should be Yix months instead of twelve months, as provided for in the Bill. The committee proceeds:—

■ "In clause 12 relief may be applied.for within six months after the lessor, has re-entered or taken proceedings ti enforce forfeiture, but this period is much too long and should not exceed three months, since the lessor should not be kept in an uncertain mind as to what action he can take to realise or deal with the security. "As to the other recommendations previously made from the Wellington Chamber the committee is of opinion that further representations should be made to the Attorney-General and step* taken to tender-evidence upon them be. fore the Statutes Revision Committed These reaommendationg covered proTisions for;—

"(1) The appointment of approved persons as 'trustees in bankruptcy '*■ who might act in and administer case* of bankruptcy. The power to appoint private assignees is already in the legisr lation affecting bankruptcy in Bagi land, Canada, Australia, and Sonttf Africa, and the incorporation of tW power in this Dominio* would b» a twt ther step towards uniformity ia ve«bi mercial legislation within, the Bb3

(2) A more precise definition o* books of account and record* r» cask received and paid, sales and purshMes*and stocks and annual statement <& assets and liabilities. This had been! found possible in the English Statnfcv and could with considerable advaatmjwr be enacted in New Zealand. "(3) Payment by the State of ac» penses of extraditing and returning!* New Zealand any person who h M leftf the .Dominion in such circumstances 1 that it is apparent there is an intention to defeat or defraud his ereditoifci This power of extradition can be exer* cised in cases of embezzlement an* should apply equally so in the ease of an absconding bankrupt. "(4) The administration of insolvent deceased estates by the Official Assigne* or Public Trustee, or trustee in b»nti» rnptcy. Respecting this and clanse £ of the new Bill, regard should be ha* to uniformity in the marshalling of so* sets in order of priority of paymenti Section 65 of the Public Trust Office' Act, 1921, contains provisions additional to those mentioned in section 120 of the Bankruptcy Act, 1908, and part ITCi of the Administration Act, 1908, shouli be co-ordinated." •