Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3)

Act current to 2014-10-27 and last amended on 2013-04-01. Previous Versions

Marginal note:Effect of defect or irregularity in appointment

 No defect or irregularity in the appointment of a trustee vitiates any act done by the trustee in good faith.

  • 1992, c. 27, s. 9.

Corporations as Trustees

Marginal note:Majority of officers and directors must hold licences

 A body corporate may hold a licence as a trustee only if a majority of its directors and a majority of its officers hold licences as trustees.

  • 1992, c. 27, s. 9.
Marginal note:Acts of body corporate

 A body corporate that holds a licence as a trustee may perform the duties and exercise the powers of a trustee only through a director or officer of the body corporate who holds a licence as a trustee.

  • 1992, c. 27, s. 9.
Marginal note:Not carrying on business of trust company

 Every body corporate that is incorporated by or under an Act of Parliament and that holds a licence as a trustee may carry on the business of a trustee anywhere in Canada and shall not, in respect of its operations as a trustee, be construed to be carrying on the business of a trust company.

  • 1992, c. 27, s. 9.

Official Name

Marginal note:Official name in bankruptcy and proposal proceedings

 The official name of a trustee acting in bankruptcy proceedings is “The Trustee of the Estate of (insert name of the bankrupt), a bankrupt”, and the official name of a trustee acting with respect to a proposal by an insolvent person is “The Trustee acting in re the proposal of (insert the name of the debtor)”.

  • R.S., c. B-3, s. 11.

Status of Trustee

Marginal note:Declaration

 A trustee is deemed to be a trustee for the purposes of the definition “trustee” in section 2 of the Criminal Code.

  • 1997, c. 12, s. 16;
  • 2004, c. 25, s. 17(F).

Duties and Powers of Trustees

Marginal note:Security to be given by trustee
  •  (1) Every trustee duly appointed shall, as soon as they are appointed, give security in cash or by bond or suretyship of a guaranty company satisfactory to the official receiver for the due accounting for, the payment and the transfer of all property received by the trustee as trustee and for the due and faithful performance of the trustee’s duties.

  • Marginal note:Security to be given by trustee

    (2) The security required to be given under subsection (1) shall be given to the official receiver in favour of the creditors generally and may be enforced by any succeeding trustee or by any one of the creditors on behalf of all by direction of the court, and may be increased or reduced by the official receiver.

  • Marginal note:Trustee to take possession and make inventory

    (3) The trustee shall, as soon as possible, take possession of the deeds, books, records and documents and all property of the bankrupt and make an inventory, and for the purpose of making an inventory the trustee is entitled to enter, subject to subsection (3.1), on any premises on which the deeds, books, records, documents or property of the bankrupt may be, even if they are in the possession of an executing officer, a secured creditor or other claimant to them.

  • Marginal note:Warrant required to enter

    (3.1) Where the premises referred to in subsection (3) are occupied by a person other than the bankrupt, the trustee may not enter the premises without the consent of that other person except under the authority of a warrant issued under section 189.

  • Marginal note:Trustee to be receiver

    (4) The trustee shall, in relation to and for the purpose of acquiring or retaining possession of the property of the bankrupt, be in the same position as if he were a receiver of the property appointed by the court, and the court may on his application enforce the acquisition or retention accordingly.

  • Marginal note:Right of trustee to books of account, etc.

    (5) No person is, as against the trustee, entitled to withhold possession of the books of account belonging to the bankrupt or any papers or documents, including material in electronic form, relating to the accounts or to any trade dealings of the bankrupt or to set up any lien or right of retention thereon.

  • R.S., 1985, c. B-3, s. 16;
  • R.S., 1985, c. 31 (1st Supp.), s. 3;
  • 1994, c. 26, s. 7;
  • 1997, c. 12, s. 17;
  • 2004, c. 25, s. 18.