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

Act current to 2017-11-20 and last amended on 2017-09-21. Previous Versions

Marginal note:Right of creditor to vote
  •  (1) A person is not entitled to vote as a creditor at any meeting of creditors unless the person has duly proved a claim provable in bankruptcy and the proof of claim has been duly filed with the trustee before the time appointed for the meeting.

  • Marginal note:Voting by proxy

    (2) A creditor may vote either in person or by proxy.

  • Marginal note:Form of proxy

    (3) A proxy is not invalid merely because it is in the form of a letter or printed matter transmitted by any form or mode of telecommunication.

  • Marginal note:Debtor may not be proxyholder

    (4) A debtor may not be appointed a proxyholder to vote at any meeting of the debtor’s creditors.

  • Marginal note:Corporation

    (5) A corporation may vote by an authorized proxyholder at meetings of creditors.

  • Marginal note:Vote of creditors not dealing at arm’s length

    (6) If the chair is of the opinion that the outcome of a vote was determined by the vote of a creditor who did not deal with the debtor at arm’s length at any time during the period that begins on the day that is one year before the date of the initial bankruptcy event and that ends on the date of the bankruptcy, the chair shall redetermine the outcome by excluding the creditor’s vote. The redetermined outcome is the outcome of the vote unless a court, on application within 10 days after the day on which the chair redetermined the outcome of the vote, considers it appropriate to include the creditor’s vote and determines another outcome.

  • (7) [Repealed, 2005, c. 47, s. 80]

  • R.S., 1985, c. B-3, s. 109;
  • 1992, c. 27, s. 46;
  • 1997, c. 12, s. 86;
  • 1999, c. 31, s. 24(F);
  • 2004, c. 25, s. 63;
  • 2005, c. 47, s. 80;
  • 2007, c. 36, s. 45.
Marginal note:Claims acquired after date of bankruptcy
  •  (1) No person is entitled to vote on a claim acquired after the date of bankruptcy in respect of a debtor unless the entire claim is acquired.

  • Marginal note:Exception

    (2) Subsection (1) does not apply to persons acquiring notes, bills or other securities on which they are liable.

  • R.S., 1985, c. B-3, s. 110;
  • 2005, c. 47, s. 81.
Marginal note:Creditor secured by bill or note

 A creditor shall not vote in respect of any claim on or secured by a current bill of exchange or promissory note held by him, unless he is willing to treat the liability to him thereon of every person who is liable thereon antecedently to the debtor, and who is not a bankrupt, as a security in his hands and to estimate the value thereof and for the purposes of voting, but not for the purposes of dividend, to deduct it from his claim.

  • R.S., c. B-3, s. 89.
Marginal note:Voting by secured creditor

 For the purpose of voting, a secured creditor shall, unless he surrenders his security, state in his proof the particulars of his security, the date when it was given and the value at which he assesses it, and he is entitled to vote only in respect of the balance, if any, due to him, after deducting the value of his security.

  • R.S., c. B-3, s. 90.
Marginal note:Trustee may vote
  •  (1) If the trustee is a proxyholder for a creditor, the trustee may vote as a creditor at any meeting of creditors.

  • Marginal note:Trustee’s vote not to count in respect of certain resolutions

    (2) The vote of the trustee — or of the partner, clerk or legal counsel of the trustee, or of the clerk of the legal counsel of the trustee — as proxyholder for a creditor, shall not be counted in respect of any resolution affecting the remuneration or conduct of the trustee.

  • Marginal note:Persons not entitled to vote

    (3) The following persons are not entitled to vote on the appointment of a trustee — and except with the permission of the court and on any condition that the court may impose, the following persons are not entitled to vote on the appointment of inspectors:

    • (a) the father, mother, child, sister, brother, uncle or aunt, by blood, adoption, marriage or common-law partnership, or the spouse or common-law partner, of the bankrupt;

    • (b) where the bankrupt is a corporation, any officer, director or employee thereof; and

    • (c) where the bankrupt is a corporation, any wholly owned subsidiary corporation or any officer, director or employee thereof.

  • R.S., 1985, c. B-3, s. 113;
  • R.S., 1985, c. 31 (1st Supp.), s. 73;
  • 2000, c. 12, s. 13;
  • 2004, c. 25, s. 64;
  • 2005, c. 47, s. 82.
Marginal note:Evidence of proceedings at meetings of creditors
  •  (1) A minute of proceedings at a meeting of creditors under this Act signed at the same or the next ensuing meeting by a person describing himself as or appearing to be chair of the meeting at which the minute is signed shall be admitted in evidence without further proof.

  • Marginal note:Evidence of regularity

    (2) Until the contrary is proved, every meeting of creditors in respect of the proceedings whereof a minute has been signed by the chair shall be deemed to have been duly convened and held and all resolutions passed or proceedings thereat to have been duly convened and held and to have been duly passed or had.

  • R.S., 1985, c. B-3, s. 114;
  • 2005, c. 47, s. 123(E).
Marginal note:Votes

 Subject to this Act, all questions at meetings of creditors shall be decided by resolution carried by the majority of votes, and for that purpose the votes of a creditor shall be calculated by counting one vote for each dollar of every claim of the creditor that is not disallowed.

  • R.S., 1985, c. B-3, s. 115;
  • 1992, c. 27, s. 47.
Marginal note:Court order — interlocutory or permanent

 In an application to revoke or vary a decision that affects or could affect the outcome of a vote, the court may make any order that it considers appropriate, including one that suspends the effect of the vote until the application is determined and one that redetermines the outcome of the vote.

  • 2007, c. 36, s. 46.

Inspectors

Marginal note:Resolution respecting inspectors
  •  (1) At the first or a subsequent meeting of creditors, the creditors shall, by resolution, appoint up to five inspectors of the estate of the bankrupt or agree not to appoint any inspectors.

  • Marginal note:Persons not eligible

    (2) No person is eligible to be appointed or to act as an inspector who is a party to any contested action or proceedings by or against the estate of the bankrupt.

  • Marginal note:Powers

    (3) The powers of the inspectors may be exercised by a majority of them.

  • Marginal note:Filling vacancy

    (4) The creditors or inspectors at any meeting may fill any vacancy on the board of inspectors.

  • Marginal note:Revocation and replacement

    (5) The creditors may at any meeting and the court may on the application of the trustee or any creditor revoke the appointment of any inspector and appoint another in his stead.

  • R.S., 1985, c. B-3, s. 116;
  • 2005, c. 47, s. 83.
Marginal note:Meetings
  •  (1) The trustee may call a meeting of inspectors when he deems it advisable and he shall do so when requested in writing by a majority of the inspectors.

  • Marginal note:Participation by telephone, etc.

    (1.1) An inspector may, if all the other inspectors consent, participate in a meeting of inspectors by means of such telephone or other communication facilities as permit all persons participating in the meeting to communicate with each other, and an inspector participating in such a meeting by such means is deemed for the purpose of this Act to be present at that meeting.

  • Marginal note:Trustee votes in case of tie

    (2) In the event of an equal division of opinion at a meeting of inspectors, the opinion of any absent inspector shall be sought in order to resolve the difference, and in the case of a difference that cannot be so resolved, it shall be resolved by the trustee, unless it concerns his personal conduct or interest in which case it shall be resolved by the creditors or the court.

  • R.S., 1985, c. B-3, s. 117;
  • 1992, c. 27, s. 48.
Marginal note:Obligation of trustee when inspectors fail to exercise their powers

 If the inspectors fail to exercise the powers conferred on them, the trustee shall call a meeting of the creditors for the purpose of substituting other inspectors and for the purpose of taking any action or giving any directions that may be necessary.

  • R.S., 1985, c. B-3, s. 118;
  • 2005, c. 47, s. 84.
 
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