The Sixth meeting begins by discussing Romalpa clauses. Then, the Secretary is asked to enlarge the abuse of ss. 125, 126 of the Bankruptcy Act 1869. The document includes the correspondence between the Vice Chancellor of the Royal Courts of Justice, and Muir Hunter, regarding the application and study of Romalpa Clauses.

On page 7, you will find a report of the minutes of the sixth meeting of the Insolvency Law Review Committee, in which criminal bankruptcy, Romalpa clauses and the administration of bankruptcy and company winding up initiatory procedures are discussed. The meeting also has a lot of comments on how future meetings should be conducted.

Criminal Bankruptcy

On criminal bankruptcy, the Committee highlights that the persons against whom criminal bankruptcy procedures were being conducted were unlikely to be co-operative because there were lengthy prison sentences against them. This was raised as one of the issues that should be discussed in the future, but that it remains an issue that affected the system.

Romalpa

On Romalpa, the Committee discussed the approach of the Law Commission. The Committee said that the Commission was reviewing Romalpa from an ordinary trading conditions, while the committee was only concerned with Romalpa in an insolvency situation. The committee then made a number of comments on Mr Penny’s ”Thoughts on Romalpa” paper. It again emphasized that the committee was only interested in what happens in an insolvency situation, and said that Mr Penny’s paper went outside the latter.

The Committee then discussed the matter of registration of Romalpa clauses, mainly the issue of designing a central registry. Then the chairman remarked that the report should outline the reasons why Roamlpa clauses should not be enforced in insolvency, if the committee were to recommend that they do not be enforced. The extend of the applicability of Romalpa clauses was also discussed.

Administration 

The Committee continued to review ILRC 20. It also discussed the views expressed of Registrars and Practitioners regarding collectivising bankruptcy, particularly the dangers of collectivising a company’s winding-up. The situation with regards to a company’s account was discussed by reference to the Bankers’ Association submission. The Committee then highlights a number of problems with regards to the disposition of property, by Mr Penny commented that these problems could largely be dealt with if there was a preliminary hearing on notice. The committee finally proposes that the current procedures of voluntary and compulsory winding up, bankruptcy and deeds of arrangement be highlighted, and the possibility of  harmonising those procedures be discussed.

 

 

 

 

Meeting 6 - 28-7-77