Mr. H. H. McLEAN:
I understand that, first, official assignees are to be appointed on personal application, stating their qualifications, and then security is to be given in the sum of $10,000. I under-
10 p.m. stand also that only these official assignees can be appointed trustees of the estate. Section 15 says that "a majority in number of the creditors who hold half or more in amount of the proved debts," and so on, may, at their discretion, substitute any other authorized trustee for the trustee named in the receiving order. I do not understand why only official trustees appointed by the Governor in Council can be appointed as trustees of the estate. Take a big fishing business like that conducted by the hon. member for Northumberland (Mr. Loggie)-this is merely an illustration -it would require a man conversant with that particular business to take charge oi that estate and successfully wind it up. But they can only appoint an official trustee from that district, and a man who might have special qualifications for the position could not be appointed by the creditors. The same thing applies to shipbuilding concerns and lumbering industries, which require men with special knowledge. I do not see why the creditors' power of appointment is taken away. In England, and under our own Insolvency Act of 1869 and 1875, the creditors have the power of appointment. I would like the minister to explain 126
why the majority of creditors, over 50 per cent, should not have the right to select the assignee of the estate, subject to the approval of the court, and why the choice should be limited to a particular class appointed by the Governor in Council. A certain number of people will apply and give securities and bonds, but in connection with large estates the creditors might not wish to have them, owing to lack of the particular qualification.
Topic: BANKRUPTCY ACT.