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

Act current to 2014-10-15 and last amended on 2013-04-01. Previous Versions

Marginal note:Stay of proceedings — directors
  •  (1) Where a notice of intention under subsection 50.4(1) has been filed or a proposal has been made by an insolvent corporation, no person may commence or continue any action against a director of the corporation on any claim against directors that arose before the commencement of proceedings under this Act and that relates to obligations of the corporation where directors are under any law liable in their capacity as directors for the payment of such obligations, until the proposal, if one has been filed, is approved by the court or the corporation becomes bankrupt.

  • Marginal note:Exception

    (2) Subsection (1) does not apply in respect of an action against a director on a guarantee given by the director relating to the corporation’s obligations or an action seeking injunctive relief against a director in relation to the corporation.

  • Marginal note:Resignation or removal of directors

    (3) Where all of the directors have resigned or have been removed by the shareholders without replacement, any person who manages or supervises the management of the business and affairs of the corporation shall be deemed to be a director for the purposes of this section.

  • 1997, c. 12, s. 65.
Marginal note:Court may declare that stays, etc., cease

 A creditor who is affected by the operation of sections 69 to 69.31 or any other person affected by the operation of section 69.31 may apply to the court for a declaration that those sections no longer operate in respect of that creditor or person, and the court may make such a declaration, subject to any qualifications that the court considers proper, if it is satisfied

  • (a) that the creditor or person is likely to be materially prejudiced by the continued operation of those sections; or

  • (b) that it is equitable on other grounds to make such a declaration.

  • 1992, c. 27, s. 36;
  • 1997, c. 12, s. 65.
Marginal note:Non-application of certain provisions
  •  (1) Sections 69 to 69.31 do not apply in respect of a claim referred to in subsection 121(4).

  • Marginal note:No remedy, etc.

    (2) Notwithstanding subsection (1), no creditor with a claim referred to in subsection 121(4) has any remedy, or shall commence or continue any action, execution or other proceeding, against

    • (a) property of a bankrupt that has vested in the trustee; or

    • (b) amounts that are payable to the estate of the bankrupt under section 68.

  • 1997, c. 12, s. 65.
Marginal note:No stay, etc., in certain cases

 Despite anything in this Act, no provision of this Act shall have the effect of staying or restraining, and no order may be made under this Act staying or restraining,

  • 2001, c. 9, s. 574.