other than the official receiver, appoint a manager thereof accordingly to act until a trustee is appointed, and with such powers (including any of the powers of a receiver) as may be entrusted to him by the official

receiver.

(2.) The special manager shall give security and account in such manner as the Board of Trade may direct.

(3.) The special manager shall receive such remuneration as the creditors may, by resolution at an ordinary meeting, determine, or in default of any such resolution, as may be prescribed.

13. Advertisement of Receiving Order.*-Notice of every receiving order, stating the name, address, and description of the debtor, the date of the order, the Court by which the order is made, and the date of the petition, shall be gazetted and advertised in a local paper in the prescribed manner.

14. Power to Court to annul Receiving Order in certain Cases. If in any case where a receiving order

* This clause is in substitution for clause 10 of the Bankruptcy Act of 1869; from which it differs in more than one particular, the most important being, that advertisement of the receiving order in a local paper will in future be compulsory, while the corresponding advertisement of an adjudication ("if any "), under the Act of 1869 was left to be dealt with under the general rules. "The prescribed manner" is, we need hardly say, the manner prescribed by the General Rules under the present Act.

+ This clause confers a new and very important power upon the Court. The object contemplated by it is, we need hardly say, the eminently desirable one of preventing an insolvent from escaping the legitimate control of his creditors by resorting to atribunal at a distance from their residence or otherwise inconvenient to them.

G

has been made on a bankruptcy petition it shall appear to the Court by which such order was made, upon an application by the official receiver, or any creditor or other person interested, that a majority of the creditors in number and value are resident in Scotland or in Ireland, and that from the situation of the property of the debtor, or other causes, his estate and effects ought to be distributed among the creditors under the Bankrupt or Insolvent Laws of Scotland or Ireland, the said Court, after such inquiry as to it shall seem fit, may rescind the receiving order and stay all proceedings on, or dismiss the petition upon such terms, if any, as the Court may think fit.

Proceedings consequent on Order.

15. First and other Meetings of Creditors.*-(1.) As soon as may be after the making of a receiving order against a debtor a general meeting of his creditors (in this Act referred to as the first meeting of creditors) shall be held for the purpose of considering whether a proposal for a composition or scheme of arrangement shall be entertained, or whether it is expedient that the debtor shall be adjudged bankrupt, and generally as to the mode of dealing with the debtor's property.

(2.) With respect to the summoning of and proceedings at the first and other meetings of creditors, the rules in the First Schedule shall be observed.

16. Debtor's Statement of Affairs.†-(1.) Where a *This is substantially a new clause. It may be said to replace clauses 14 and 16 of the Act of 1869. For the rules regulating the summoning of and proceedings at the first and other meetings of creditors, see Schedule I., post, p. 231. This also is substantially a new clause; for although it is directed

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.

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

to the same object (that of enforcing a statement by the debtor of the condition of his affairs) as was contemplated by section 19 of the Bankruptcy Act of 1869, its terms and requirements are much more stringent, exacting, and precise than those of the earlier clause.

By clause 100 a County Court has for the purposes of its bankruptcy jurisdiction (in addition to its ordinary powers) all the powers and jurisdiction of the High Court.

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.

Public Examination of Debtor.

17. Public Examination of Debtor.*-(1.) Where the Court makes a receiving order it shall hold a public sitting on a day to be appointed by the Court, for the examination of the debtor, and the debtor shall attend thereat, and shall be examined as to 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 authorized in writing, may question the debtor concerning his affairs and the causes of his failure.

* This is, we need hardly say, a new clause, and one of the most important and characteristic in the present bill, because it is one of those directed to enforce a public examination of all debtors against whom a receiving order has been granted before a scheme of composition is finally considered by the creditors. Under the Act of 1869 there was no public examination unless and until a debtor was made bankrupt. If, therefore, he could prevail on his creditors not to make him bankrupt, but to come to an arrangement under the liquidation clauses, there never was any public examination at all. Under the present Act every insolvent debtor will have to pass through the ordeal of a public examination. Another novel feature in the clause is the power conferred upon the official receiver under the direction of the Board of Trade.

(5.) The official receiver shall take part in the examination of the debtor; and for the purpose thereof, if specially authorized 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 such order shall not be made until after the day appointed for the first meeting of creditors.

Composition or Scheme of Arrangement.

18. Power for Creditors to accept and Court to approve Composition or Arrangement.-(1.) The creditors may at the first meeting or any adjournment thereof, by special resolution,* resolve to entertain a proposal for a composition in satisfaction of the debts due to

* A special resolution is defined by the interpretation clause as "a resolution decided by a majority in number and three-fourths in value of the creditors present personally or by proxy at a meeting of creditors, and voting on the resolution." That is to say, in order to carry a resolution it must receive the support of a numerical majority of the creditors voting, such numerical majority representing threefourths of the debts due to creditors present personally or by proxy.