Discharge of Trustee
Marginal note:Disposal of unrealizable property
40. (1) Any property of a bankrupt that is listed in the statement of affairs referred to in paragraph 158(d) or otherwise disclosed to the trustee before the bankrupt’s discharge and that is found incapable of realization must be returned to the bankrupt before the trustee’s application for discharge, but if inspectors have been appointed, the trustee may do so only with their permission.
Marginal note:Final disposition of property
(2) Where a trustee is unable to dispose of any property as provided in this section, the court may make such order as it may consider necessary.
- R.S., 1985, c. B-3, s. 40;
- 2005, c. 47, s. 29.
Marginal note:Application to court
41. (1) When a trustee has completed the duties required of him with respect to the administration of the property of a bankrupt, he shall apply to the court for a discharge.
Marginal note:Discharge of trustee
(2) The court may discharge a trustee with respect to any estate on full administration thereof or, for sufficient cause, before full administration.
Marginal note:When another trustee has been appointed
(3) A trustee when replaced by another trustee is entitled to be discharged if he has accounted to the satisfaction of the inspectors and the court for all property that came to his hands, and a period of three months has elapsed after the date of the replacement without any undisposed of claim or objection having been made by the bankrupt or any creditor.
Marginal note:When estate deemed fully administered
(4) When a trustee’s accounts have been approved by the inspectors and taxed by the court and all objections, applications, oppositions, motions and appeals have been settled or disposed of and all dividends have been paid, the estate is deemed to have been fully administered.
Marginal note:Objections to be filed with court and trustee
(5) Any interested person desiring to object to the discharge of a trustee shall, at least five days prior to the date of the hearing, file notice of objection with the registrar of the court setting out the reasons for the objection and serve a copy of the notice on the trustee.
Marginal note:Court may grant discharge
(6) The court shall consider the objection filed under subsection (5) and may grant or withhold a discharge accordingly or give such directions as it may deem proper in the circumstances.
Marginal note:Fraud or breach of trust
(7) Nothing in or done under authority of this section relieves or discharges or shall be deemed to relieve or discharge a trustee from the results of any fraud.
Marginal note:Effect of discharge of trustee
(8) The discharge of a trustee discharges him from all liability
(a) in respect of any act done or default made by him in the administration of the property of the bankrupt, and
(b) in relation to his conduct as trustee,
but any discharge may be revoked by the court on proof that it was obtained by fraud or by suppression or concealment of any material fact.
Marginal note:Investigation not precluded
(8.1) Nothing in subsection (8) is to be construed as preventing an inquiry, investigation or proceeding in respect of a trustee under subsection 14.01(1).
Marginal note:Security released
(9) The discharge of a trustee under this section operates as a release of the security provided pursuant to subsection 16(1).
Marginal note:Trustee remains
(10) Notwithstanding his discharge, the trustee remains the trustee of the estate for the performance of such duties as may be incidental to the full administration of the estate.
Marginal note:Appointment of trustee by court to complete administration
(11) The court, on being satisfied that there are assets that have not been realized or distributed, may, on the application of any interested person, appoint a trustee to complete the administration of the estate of the bankrupt, and the trustee shall be governed by the provisions of this Act, in so far as they are applicable.
- R.S., 1985, c. B-3, s. 41;
- 1997, c. 12, s. 25;
- 2004, c. 25, s. 25;
- 2007, c. 36, s. 12.
- Date modified: