As to mutual credits and set-off, see Mutual Credit, Sect. 38, and notes. See further as to proofs, Sects. 38, 39, 40. § 15. Mutual credits. The chairman of a meeting (which includes the nomince of Duties of the receiver or other person acting as chairman) shall have chairman. power to admit or reject a proof for the purpose of voting, but his decision is subject to appeal to the Court. If he is in doubt whether the proof of a creditor should be admitted or rejected, he must mark the proof as objected to, and allow the creditor to vote, subject to the vote being declared invalid in the event of the objection being sustained (u). It has been held that it is no ground for vacating the trustee's appointment that a creditor has been prevented from voting on such appointment by an improper (not fraudulent) rejection of his proof (). Proxies. A creditor may vote either in person or by proxy (y). Every instrument of proxy must be in the prescribed form, and be issued by the official receiver, or, after the appointment of a trustee, by the trustee, and every insertion therein must be in the handwriting of the person giving the proxy (2). A creditor may give a general proxy to his manager or clerk, Proxies. or any other person in his regular employment. In such case the instrument of proxy must state the relation in which the person to act thereunder stands to the creditor (a). Where the creditor is a corporation the appointment should be under seal ; see Sect. 148. A creditor may give a special proxy to any person to vote at any specified meeting or adjournment thereof, for or against any specific resolution, or for or against any specified person as trustee or member of a committee (b). A proxy must not be used unless it is deposited with the official receiver or trustee before the meeting at which it is to be (u) Sched. 1, r. 14. This rule embodies the decision in Ex parte Ashworth re Hoare, L. R. 18 Eq. 705; and see, as to objection at a second meeting being in time, Ex parte Weil re Mentrop, 5 Ch. D. 345; 46 L. J. Bank. 84. (x) Ex parte Kimber re Thrift, 11 Ch. D. 869; 41 L. T. 248. See also Ex parte Mark re Amor, C. A. 31 W. R. 101. (y) Sched. 1. r. 15. (z) Ib., r. 16. It had been held (a) Sched. 1, r. 17. §§ 15, 16. used (c). A creditor may appoint the official receiver of the bankrupt's estate to act as his general or special proxy (d). Minutes of meeting. Debtor's statement of affairs. Bankruptcy Act, 1869, s. 19. To canvas for or procure an appointment will disentitle the receiver (sic) or trustee to remuneration (e). An important new rule is as follows: "No person acting either under a general or special proxy shall vote in favour of any resolution which would directly or indirectly place himself, his partner, or employer, in a position to receive any remuneration out of the estate of the debtor otherwise than as a creditor, rateably with the other creditors of the debtor. Provided that where any person holds special proxies to vote for the appointment of himself as trustee, he may use the said proxies, and vote accordingly (f). The chairman of every meeting must cause minutes of the proceedings at the meeting to be drawn up and fairly entered in a book kept for that purpose, and the minute must be signed by him or by the chairman of the next ensuing meeting (g). He may also adjourn a meeting. 16. (1.) Where a receiving order is made against a debtor, he shall make out and submit to the official receiver a statement of and in relation to his affairs in the prescribed form, verified by affidavit, and showing the particulars of the debtor's assets, debts, and liabilities, the names, residences, and occupations of his creditors, the securities held by them respectively, the dates when the securities were respectively given, and such` further or other information as may be prescribed or as the official receiver may require. (2.) The statement shall be so submitted within the following times, namely: (i.) If the order is made on the petition of the debtor, within three days from the date of the order. (ii.) If the order is made on the petition of a creditor, within seven days from the date of the order. (c) Ib., r. 19. (d) Sched. 1, r. 21. (c) Ib., r. 20. (f) Sched. 1, r. 26. (g) Sched. 1, r. 25. This rule has been taken from the 106th bankruptcy rule, which required the Registrar to to have such minutes taken. But the Court may, in either case, for special reasons, extend the time. (3.) If the debtor fails without reasonable excuse to comply with the requirements of this section, the Court may, on the application of the official receiver, or of any creditor, adjudge him bankrupt. (4.) Any person stating himself in writing to be a creditor of the bankrupt may, personally or by agent, inspect this statement at all reasonable times, and take any copy thereof or extract therefrom, but any person untruthfully so stating himself to be a creditor shall be guilty of a contempt of Court, and shall be punishable accordingly on the application of the trustee or official receiver. Statement of Affairs. Under Sect. 19 and Rules 90 and 92 of the Act of 1869, only after adjudication, and upon service of an order requiring him to do so, did the debtor produce at his first meeting in bankruptcy a duplicate of his statement of affairs, and its non-production did not necessarily delay the appointment of trustees; but such statement was only required to be signed and made out to the best of the debtor's ability. And in liquidation a similar statement was, under Sect. 125, required to be produced to the several meetings of creditors. Now, however, before adjudication, and upon the receiving order being made, the debtor's statement is to be made out and submitted to the receiver, and is to be verified by affidavit. Much care will henceforth be required in its preparation. See form of affidavit. Where the receiving order has been made on the debtor's petition, the statement is to be submitted within three days from the date of the order, but within seven days from the date of the order upon a creditor's petition, unless in either case the time has been extended (h). It is a penal offence (h) The list of creditors contained to notice of such creditors for diviin the statement, is for all purposes dend purposes, see s. 58, par. 4, and s. 60. the official list of creditors; and as § 16. § 16. Who are bound. within the Debtors Act, 1869 (i), to make a fraudulent omission from the statement of affairs. An important provision is to be found in Schedule 1, Rule 3, which directs that the official receiver shall, as soon as practicable, send to each creditor mentioned in the debtor's statement of affairs a notice of the time and place of the first meeting of creditors, "accompanied by a summary of the debtor's statement of affairs, including the causes of his failure, and any observations thereon which the official receiver may think fit to make." Having regard to the probable usefulness of this provision, it is unlikely that the first meeting (at least where the petition is by a creditor, and seven days are allowed for filing the statement) can usefully be held much sooner than the fourteen days' limit for the holding of such meeting, as otherwise the creditors will have little opportunity of testing and examining the statement of affairs with a view to determining what course to take at the first meeting. The statement was not, under the last Act, required to be vouched upon oath; now it must be verified by affidavit. The penalty now imposed upon the debtor, if he fails to comply with the requirements of this section, is that he may be adjudged bankrupt (k). Where bankruptcy ensues after the statement has been filed, it is presumed all creditors in respect of debts dischargeable on bankruptcy, whether inserted or not, will be bound by the bankruptcy; but under the Act of 1869, where a composition was accepted under Sect. 126, only such creditors in respect of debts which were in the statement were bound, unless the creditor not entered had proved his debt and opposed the resolutions (). It was the duty of a debtor who carried on business alone, and also in partnership, to state the assets and liabilities not only of the separate business, but also of the partnership business, though his partner was solvent; and unless he did so, he was not entitled to have the benefit of a liquidation by arrangement or composition, but must have submitted to bankruptcy (m). (i) See s. 11, and also s. 163 of the present Act. (k) As to the course to be taken upon the insufficiency of the statement, see Ex parte Milne re Denton, 28 L. T. 175; and as to examination of the accounts, see Re Lawrence, 22 L. T. 246. (1) Ex parte Jacobs, L. R. 10 Ch. 211. (m) Ex parte Amor re Amor, 21 Ch. D. 594. Public Examination of Debtor. § 17. nation of 17. (1.) Where the Court makes a receiving order it Public exami shall hold a public sitting, on a day to be appointed by debtor. the Court, for the examination of the debtor, and the Bankruptey Act, 1869, debtor shall attend thereat, and shall be examined as to s. 19. his conduct, dealings, and property. (2.) The examination shall be held as soon as conveniently may be after the expiration of the time for the submission of the debtor's statement of affairs. (3.) The Court may adjourn the examination from time to time. (4.) Any creditor who has tendered a proof, or his representative authorised in writing, may question the debtor concerning his affairs and the causes of his failure. (5.) The official receiver shall take part in the examination of the debtor; and for the purpose thereof, if specially authorised by the Board of Trade, may employ a solicitor with or without counsel. (6.) If a trustee is appointed before the conclusion of the examination he may take part therein. (7.) The Court may put such questions to the debtor as it may think expedient. (8.) The debtor shall be examined upon oath, and it shall be his duty to answer all such questions as the Court may put or allow to be put to him. Such notes of the examination as the Court thinks proper shall be taken down in writing, and shall be read over to and signed by the debtor, and may thereafter be used in evidence against him; they shall also be open to the inspection of any creditor at all reasonable times. (9.) When the Court is of opinion that the affairs of the debtor have been sufficiently investigated, it shall, by order, declare that his examination is concluded, but |