The Sun.
London, England, 1865-02-22 00:00:00

BANRUPTCY LAW REFORM.

The CHAIRMAN then moved the following resolu-
tions :
" That the experience of the commercial community and
the evidence taken before the Select Committee of the House
of Commons last Session combine to show that a thorough
reform of the English law of bankruptcy and of the system
of procedure under it is urgently needed. That in such
reform the following are important desiderata :—I. Provi-
sions for the safe, economical, and speedy realization and
distribution of the estate. That in the opinion of this
meeting the provisions of the Scottish Law of Bankruptcy
(19th and 20th Viet., c. 79) accomplish these objects very
satisfactorily, and this meeting approves their adoption in
England. 11. Provisions for the adequate and certain pun-
ishment for insolvency arising from the wilful and reckless
incurring of debt, to an extent beyond that which the
bankrupt had reasonable expectation of discharging, as
well as for actually fraudulent bankruptcy. That in re-
ference to this point it is desirable that the acts constitut-
ing reckless insolvency and fraudulent bankruptcy should
be clearly defined (irrespective of the condition of intent to
defraud) ; and that the definitions of the French Code de
Commerce (articles 585, 586, 591, 593) appear in the
main to do this satisfactorily. 111. The appointment
of a Chief Judge to secure uniformity of decisions
and greater facilities and economy in cases of ap-
peal. IV. The administration in the Court of Bank-
ruptcy of the estates of deceased insolvents. V. The
abolition of the limitation under the 221st section of the
Act of 1861, by which an offender is only punishable for a
misdemeanour if committed within three months prior to
bankruptcy. VI. The assimilation (as far as practicable) of
the statute law of England, Scotland, and Ireland on this sub-
ject. VII. The provision of means for the recovery of British
bankruptcy assets situate in any part of the British empire,
and the endeavour (by negotiation or otherwise) to obtain
means for the recovery of British bankruptcy assets situate
in foreign countries. VII. The abolition of the rule by
which secured creditors are permitted to vote for deeds of
composition in respect to such part of their claims as is
secured. IX. The consolidation of the entire statute law on
this subject into one act."
He observed that by the provisions of the present
law misdemeanours committed within three months
before the bankruptcy were punishable, but those
committed for a longer period were not. The bank-
rupt therefore escaped all punishment if the fiat were
not issued within three months and one day after
the offence was committed. By the present law
creditors who were secured had not interest in the
bankrupt's estate, and yet they were allowed to vote
in opposition to the creditors, whose interests were
bound up in the welfare of the estate. Nothing could
be more unjust than such a rule. The chairman
then adverted to the Scotch law of bankruptcy, and
observed that under that system adjudication of
bankruptcy took place either on the debtor's own
petition, or on the petition of one creditor of £5O, or
of two of £7O, or of more than two of £lOO. The
Court then appointed a meeting of creditors, who
elected a trustee, who might not be a creditor.
Every facility was given for offering a composi-
tion ; a dividend must be declared every four
months, whether there was little or much to
divide. Therefore, of an assignee failing for £13,000
or £14,000 nothing was ever heard in Scotland.
The bankrupt in that country might apply for his
discharge in one month after sequestration, with
the consent of a majority of four-fifths in value of
his creditors, and in 12 months with the consent of
obtain his discharge without the consent of any
a majority in number, and after 24 months he might
creditor, but power of opposition was given to three
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