§ LORD WESTBURY, in moving that the Bill be now read a second time, explained that of one its principal objects was to enable liquidators and assignees to apply securities to the redemption of claims of creditors without taking them into the market, and thereby reducing their value until they had to be sold at low, and, perhaps, nominal prices. The distribution was to be made under a scheme prepared by the liquidators, and sanctioned by the Court of Chancery. Another portion of the Bill related to creditors holding securities by way of mortgage or pledge, and provided for the realization of property so held. The Bill would only apply to companies now in the course of liquidation.
§ Moved, "That the Bill be now read 2a"—(The Lord Westbury.)
THE LORD CHANCELLORsaid, the cases to which this Bill applied were of a very exceptional and peculiar kind, and he believed his noble and learned Friend was correct in stating that it would be utterly 367 impossible to conduct and finally execute the winding-up of such cases without the aid of some exceptional power unknown to the Common Law and inapplicable to ordinary cases. As the Bill was to be confined to the peculiar cases referred to, it ought, in his opinion, to receive their Lordships' assent.
§ Motion agreed to; Bill read 2a accordingly, and committed to a Committee of the Whole House on Thursday next.