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

Act current to 2014-04-02 and last amended on 2013-04-01. Previous Versions

Marginal note:Removal of directors
  •  (1) The court may, on the application of any person interested in the matter, make an order removing from office any director of a debtor in respect of whom a notice of intention has been filed under section 50.4 or a proposal has been filed under subsection 62(1) if the court is satisfied that the director is unreasonably impairing or is likely to unreasonably impair the possibility of a viable proposal being made in respect of the debtor or is acting or is likely to act inappropriately as a director in the circumstances.

  • Marginal note:Filling vacancy

    (2) The court may, by order, fill any vacancy created under subsection (1).

  • R.S., 1985, c. B-3, s. 64;
  • 1992, c. 27, s. 29;
  • 1997, c. 12, s. 40;
  • 1999, c. 31, s. 20;
  • 2005, c. 47, s. 42.
Marginal note:Security or charge relating to director’s indemnification
  •  (1) On application by a person in respect of whom a notice of intention is filed under section 50.4 or a proposal is filed under subsection 62(1) and on notice to the secured creditors who are likely to be affected by the security or charge, a court may make an order declaring that all or part of the property of the person is subject to a security or charge — in an amount that the court considers appropriate — in favour of any director or officer of the person to indemnify the director or officer against obligations and liabilities that they may incur as a director or officer after the filing of the notice of intention or the proposal, as the case may be.

  • Marginal note:Priority

    (2) The court may order that the security or charge rank in priority over the claim of any secured creditor of the person.

  • Marginal note:Restriction — indemnification insurance

    (3) The court may not make the order if in its opinion the person could obtain adequate indemnification insurance for the director or officer at a reasonable cost.

  • Marginal note:Negligence, misconduct or fault

    (4) The court shall make an order declaring that the security or charge does not apply in respect of a specific obligation or liability incurred by a director or officer if in its opinion the obligation or liability was incurred as a result of the director’s or officer’s gross negligence or wilful misconduct or, in Quebec, the director’s or officer’s gross or intentional fault.

  • 2005, c. 47, s. 42;
  • 2007, c. 36, s. 24.
Marginal note:Court may order security or charge to cover certain costs
  •  (1) On notice to the secured creditors who are likely to be affected by the security or charge, the court may make an order declaring that all or part of the property of a person in respect of whom a notice of intention is filed under section 50.4 or a proposal is filed under subsection 62(1) is subject to a security or charge, in an amount that the court considers appropriate, in respect of the fees and expenses of

    • (a) the trustee, including the fees and expenses of any financial, legal or other experts engaged by the trustee in the performance of the trustee’s duties;

    • (b) any financial, legal or other experts engaged by the person for the purpose of proceedings under this Division; and

    • (c) any financial, legal or other experts engaged by any other interested person if the court is satisfied that the security or charge is necessary for the effective participation of that person in proceedings under this Division.

  • Marginal note:Priority

    (2) The court may order that the security or charge rank in priority over the claim of any secured creditor of the person.

  • Marginal note:Individual

    (3) In the case of an individual,

    • (a) the court may not make the order unless the individual is carrying on a business; and

    • (b) only property acquired for or used in relation to the business may be subject to a security or charge.

  • 2005, c. 47, s. 42;
  • 2007, c. 36, s. 24.