he had sworn, or what he had sworn was then read over to him, and he signed his name to it twelve times. Yet notwithstanding all this it is said that his examination is not to be evidence against him, although he had the fullest opportunity of considering and correcting any error. The ground of the objection put forward is that he was compelled to criminate himself. If that ground is made out, no doubt the examination ought to have been rejected. I cannot for my part, although it may turn out that the examination is evidence against him, see how it can be called a proceeding for the purpose of criminating himself. Reg. v. Scott has conclusively determined that the examination of a bankrupt under precisely similar circumstances is admissible in evidence against him, and I think that decision ought to be taken as conclusive because it seems to me that the only question is whether that was a lawful examination. There can be no doubt but that it was a lawful examination under the Act of Parliament, and I think, also, at common law. Mr. Waddy's objection was that under the 96th sect., before the summons could issue, the certificate of the appointment of the trustee must have been registered. The contention was that the proceeding by liquidation was analogous to the adjudication of bankruptcy, and that the words " on the application of the trustee at any time after an order of adjudication has been made against a bankrupt," should be read as "on the application of the trustee at any time after the registration of the resolution of the creditors, that the affairs of the debtor shall be liquidated by arrangement, and appointing the trustee." That contention to my mind completely fails. By the petition on the 8th June he submitted himself to the jurisdiction of the Court. Thereupon a summons issued for him to appear and be examined, and in obedience to that summons he did appear, and made no objection to being examined. Under these circumstances, whether the summons was irregular, or any summons at all, it is immaterial to inquire (although I think the summons was regular), the defendant cannot now object.' "Byles and Mellor, JJ., concurred. 66 Brett, J.: 'I am of the same opinion. It was said that the examination of the defendant was made under compulsion and illegally, because the summons was issued before the trustee was appointed, and that it was a condition precedent that the summons should be applied for after the appoint ment of the trustee, and that the trustee was not to be considered as appointed until his appointment was certified and registered. It is unnecessary to determine whether the trustee is to be taken as appointed at the time of his election, or at the date of the certificate of the appointment, and I desire to give no opinion upon that point. I will assume that he is not to be considered as appointed until the certificate is given. The summons to appear and be examined was issued before that day, but in point of fact, the defendant appeared and was examined after that day, and the examination was lawfully taken if the registrar had jurisdiction to examine him when he appeared. It seems to me that the registrar had power to examine him at that time. The provision in the section as to the application for the summons is merely directory and not a condition precedent, the Court having jurisdiction to examine. Assuming the summons to have been irregular, that was an irregularity in procedure merely, and when the defendant appeared to the summons that irregularity was cured. Being before the Court and being sworn, he was properly examined, and his examination was admissible against him. The case is, within Reg. v. Scott and Reg. v. Robinson.' 66 Conviction affirmed." The close of a liquidation is fixed by a special resolution of the creditors in general meeting (s. 125, par. 9), upon the report of the trustee that the whole of the property, or so much as can be realized, without needlessly protracting the bankruptcy, has been realized for the benefit of the creditors, or that a composition or arrangement has been completed. The majority must be a majority in number and three-fourths in value of the creditors present or represented. The discharge of the debtor is granted by a special resolution of the creditors in general meeting. (S. 125, par. 9.) Where liquidation by arrangement and not in bankruptcy has been resolved on, the creditors may at the same meeting at which such resolution is passed, resolve whether the debtor's discharge shall be granted either forthwith or at a date to be specified in the resolution, or subject to any and what conditions. In default of any resolution being then come to as to the debtor's discharge a general meeting shall be summoned for the purpose of considering the grant thereof, either when the trustee shall see fit or when the com mittee of inspection (if any) or when the debtor, with the concurrence of one-fourth in value of his creditors who have proved, shall require the trustee to summon the same. (G. R. 302; Form 122.) The trustee shall report to the registrar the discharge of the debtor (Form 123), and a certificate of such discharge given by the registrar shall have the same effect as an order of discharge given to a bankrupt under this Act. (S. 125, par. 10; Form 124.) The accounts of the trustee may be audited in pursuance of such resolution, at such time and in such manner and upon such terms and conditions as the creditors think fit. (S. 125, par. 9.) The release of the trustee is granted by a special resolution of the creditors in general meeting. (S. 125, par. 9.) As to payment of Dividends.-All debts must be proved prior to the payment of dividend thereon by the trustee. (G. R. 311.) Seven days at least before declaring any dividend under a liquidation by arrangement, a notice shall be gazetted by the trustee in Form 125, requiring the creditors to send to him their names and addresses, and the particulars of their debts or claims, and on declaring a dividend, a sufficient reserve shall be made by the trustee for such dividend upon all debts or claims notified to him in pursuance of such notice. The trustee shall be also deemed to have notice of the debts of all creditors whose names are inserted in the debtor's statement of affairs, and (except where any such debt has been adjudicated upon prior to the declaration of the dividend), a similar reserve shall be made in respect thereof. (G. R. 312.) Wherever the trustee shall reject the claim or proof of any creditor he shall give notice to such creditor by post in the form given in the schedule, and where the creditor is resident in Europe the trustee shall be entitled to exclude from dividend any such claimant or creditor whose debt he so rejects, unless such creditor shall, within fourteen days from the time at which the trustee's notice should have been delivered to him in the ordinary course of post, apply to the Court to admit his proof and proceed with such application with due diligence. Where any such creditor is resident beyond the limits of Europe, such length of notice shall be given to him as the Court shall order. (G. R. 313.) Except as before mentioned, the trustee shall declare dividends amongst such creditors only as have proved their debts up to the time of such declaration of dividend, and no creditor who has omitted to prove his debt or to send to the trustee the particulars of his claim, or whose name does not appear in the debtor's statement, shall be entitled to disturb any such dividend, or to make any claim in respect thereof against the trustee, but upon proof of his debt any such creditor shall be entitled to receive the same prior to the payment of any further dividend to the other creditors. (G. R. 314.) Final dividend, Re Klein.-In this case the trustee under the liquidation was desirous of making a final dividend, and he had reserved funds to meet the claims of certain creditors who had not proved. Rule 314 provides that the trustee should declare dividends amongst such creditors only as have proved their debts up to the time of such declaration of dividend. The creditors who had not proved were abroad, and had not communicated with the trustee. The trustee now asked for the directions of the Court. The Chief Judge, after referring to the analogous sections in bankruptcy, as to distribution of dividends, provisions for creditors residing at a distance, final dividend, payment of surplus to bankrupt, close of bankruptcy and application of unclaimed dividends (sects. 41, 42, 44, 45, 47, 52), directed that the trustee should send notice to the claimants, stating that it was proposed to pay a final dividend to those creditors whose debts had been proved, which would be done, unless the claimant, to whom notice was sent, came in and proved before a date to be fixed by the registrar, varying according to the distance of the place of residence of such claimant. (MS. notes, May 19th, 1871.) PROCEDURE TO COMPOSITION THE creditors of a debtor unable to pay his debts may, without any proceedings in bankruptcy, by an extraordinary resolution, resolve that a composition shall be accepted in satisfaction of the debts due to them from the debtor. (s. 126.) An extraordinary resolution of creditors shall be a resolution which has been passed by a majority in number and three-fourths in value of the creditors of the debtor, assembled at a general meeting to be held in the manner prescribed, of which notice has been given in the prescribed manner, and has been confirmed by a majority in number and value of the creditors assembled at a subsequent general meeting, of which notice has been given in the prescribed manner, and held at an interval of not less than seven days nor more than fourteen days from the date of the meeting at which such resolution was first passed. (Ib.) In calculating a majority for the purposes of a composition under this section, creditors whose debts amount to sums not exceeding ten pounds shall be reckoned in the majority in value, but not in the majority in number, and the value of the debts of secured creditors shall, as nearly as circumstances admit, be estimated in the same way, and the same description of creditors shall be entitled to vote at such general meetings as in bankruptcy. (Ib.) The debtor, unless prevented by sickness or other cause satisfactory to such meetings, shall be present at both the meetings at which the extraordinary resolution is passed, and shall answer any inquiries made of him, and he, or if he is so prevented from being at such meetings some one on his 443 |