Reorganization Under the Chandler Act: Features of the New Revised Bankruptcy Law That Pertain to Corporate Reorganization

The Chandler Act, which makes a complete revision of the bankruptcy laws, became effective on September 22, 1938. In this act there are incorporated some very substantial changes in the law relating to corporate reorganizations. The corporate reorganization provisions in former Section 77-B of the Bankruptcy Act have been changed and revised, and have been incorporated in the new bankruptcy act as Chapter X. Most of the changes were made as a result of the recommendations of the Securities and Exchange Commission, after a study of corporate reorganizations made by direction of Congress. While many of the changes are purely procedural, yet other provisions make substantive changes of importance. Under Section 77-B, the emphasis was on creditor control; that is, by creditors and committees. Under the new act, the court itself, and the Securities and Exchange Commission will play a major part in the proceedings