Joint Committee on Legislation díospóireacht -
Friday, 29 Mar 1985

SECTION 33.

Question proposed: "That section 33 stand part of the Bill".

Deputy Noonan (Limerick East)

Section 33 is a new provision. It requires a bankrupt partner to deliver to the official assignee a separate statement of affairs in respect of the partnership. This statement of affairs will be separate from and in addition to the bankrupt's personal statement of affairs which he is required by section 19(c) to deliver to the official assignee.

This provision is intended to assist the official assignee in assessing the value of a partner's share in the partnership property where he alone is adjudicated. It is in addition to the existing practice whereby, when all the partners of a firm are adjudicated, the partners submit a joint statement of affairs in respect of the partnership and each partner submits a statement of his separate affairs. The committee recommended the continuance of this practice also.

Senator O'Leary

I wonder could the Minister explain the reason for the two statements proposed in sections 32 and 33. It seems to me that they might conflict with each other. Furthermore it is very rare for partners to submit statements. I wonder if there is a need to have two statements.

Deputy Noonan (Limerick East)

Well, I suppose in theory it is to distinguish between the obligations of the solvent partners and of the bankrupt partner. The committee recommended that where a member of a partnership was adjudicated the official assignee might require the solvent partners to lodge such accounts and information relating to the partnership and produce all necessary books of account. This is the purpose of the present section 32 as set out in the report, page 180.

On the other hand the committee also wished to impose on the bankrupt partner a duty to submit a separate statement of affairs in relation to the partnership property in addition to his own. This was on the analogy of the present practice where, when all partners are adjudicated, a joint statement of affairs and a separate statement of affairs are required. Section 33 implements this recommendation and is designed to assist the official assignee in assessing the value of the bankrupt's share.

Senator O'Leary

I understand the position but perhaps a provision could be inserted to provide that, if a bankrupt partner submitted a statement, it could then be adopted by the other partners.

Deputy Noonan (Limerick East)

I will have a look at the Senator's suggestion in the context of the new rules.

Question put and agreed to.