BANKRUPTCY.

Waikato Times, Volume 96, Issue 15867, 13 December 1923, Page 6

BANKRUPTCY.

SUGGESTED AMENDMENT OF LAW. The Bankruptcy Act has been in force in New Zealand for about 40 years, remarked Mr John Myers, president of the Wellington Chamber of Commerce, at a meeting of the council of that body recently, and for the last 41 years, he added, the associations of New Zealand chambers of commerce had endeavoured to have it amended. In other parts of the Empire amendments were made years ago. In Canada and South Africa at the present time they were amending their bankruptcy laws. Conditions had altered so much during the last few years that it was absolutely necessary that something should be done here in order to protect not only business people but the public also. Mr Myers suggested a number of amendments of the law, amongst them being the following:—

Acts of bankruptcy (Section 26) An additional act of bankruptcy should be: Refusal of the Courts to make an order of commitment on a judgment summons issued for any amount. Refusal is usually based on the fact that the debtor has no money to meet his liabilities, and, when he cannot pay a small claim, it follows that in respect of larger claims he is clearly insolvent.

Assignees.—A private assignee should, in tin- interest of creditors, be given some of the staluory powers conferred on the Official Assignee in Section 63. A private assignee has no power to exercise any penal remedies, against, a debtor who made a private assignment, and has subsequently not acted "above board." Assignments. —Where a judge is satisfied as to the bona fides of a deed of assignment for the benefit of creditors and as to the efficiency of administration, the assignee should be allowed by statute the costs of administration and a reasonable commission. Where a debtor files a petition in bankruptcy within the three months following his making a deed of assignment to a trustee for the benefit of his creditors, the private assignee should be permitted to oppose the petition. If deeds of assignment were registered, the register could be referred to before the acceptance of the petition. Private assignments should be registered and gazetted, and final accounts filed in the court after people audit as in bankruptcies. Recommendations were also made for the registration of bankruptcies and assignments, bailments; and amendments of the law were suggested in respect to fraudulent preference, absconding debtors, etc.