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

Act current to 2016-09-18 and last amended on 2015-02-26. Previous Versions

Marginal note:Terms and conditions of orders

 An order under this Part may be made on any terms and conditions that the court considers appropriate in the circumstances.

  • 1997, c. 12, s. 118;
  • 2005, c. 47, s. 122.
Marginal note:Commencement or continuation of proceedings

 If an order recognizing a foreign proceeding is made, the foreign representative may commence or continue any proceedings under sections 43, 46 to 47.1 and 49 and subsections 50(1) and 50.4(1) in respect of a debtor as if the foreign representative were a creditor of the debtor, or the debtor, as the case may be.

  • 1997, c. 12, s. 118;
  • 2004, c. 25, s. 103;
  • 2005, c. 47, s. 122.

Obligations

Marginal note:Cooperation — court
  •  (1) If an order recognizing a foreign proceeding is made, the court shall cooperate, to the maximum extent possible, with the foreign representative and the foreign court involved in the foreign proceeding.

  • Marginal note:Cooperation — other authorities in Canada

    (2) If any proceedings under this Act have been commenced in respect of a debtor and an order recognizing a foreign proceeding is made in respect of the debtor, every person who exercises any powers or performs duties and functions in any proceedings under this Act shall cooperate, to the maximum extent possible, with the foreign representative and the foreign court involved in the foreign proceeding.

  • Marginal note:Forms of cooperation

    (3) For the purpose of this section, cooperation may be provided by any appropriate means, including

    • (a) the appointment of a person to act at the direction of the court;

    • (b) the communication of information by any means considered appropriate by the court;

    • (c) the coordination of the administration and supervision of the debtor’s assets and affairs;

    • (d) the approval or implementation by courts of agreements concerning the coordination of proceedings; and

    • (e) the coordination of concurrent proceedings regarding the same debtor.

  • 1997, c. 12, s. 118;
  • 2005, c. 47, s. 122;
  • 2007, c. 36, s. 59.
Marginal note:Obligations of foreign representative

 If an order recognizing a foreign proceeding is made, the foreign representative who applied for the order shall

  • (a) without delay, inform the court of

    • (i) any substantial change in the status of the recognized foreign proceeding,

    • (ii) any substantial change in the status of the foreign representative’s authority to act in that capacity, and

    • (iii) any other foreign proceeding in respect of the same debtor that becomes known to the foreign representative; and

  • (b) publish, without delay after the order is made, once a week for two consecutive weeks, or as otherwise directed by the court, in one or more newspapers in Canada specified by the court, a notice containing the prescribed information.

  • 2005, c. 47, s. 122.

Multiple Proceedings

Marginal note:Concurrent proceedings

 If any proceedings under this Act in respect of a debtor are commenced at any time after an order recognizing the foreign proceeding is made,

  • (a) the court shall review any order made under section 272 and, if it determines that the order is inconsistent with any orders made in the proceedings under this Act, the court shall amend or revoke the order; and

  • (b) if the foreign proceeding is a foreign main proceeding, the court shall make an order terminating the application of the prohibitions in paragraphs 271(1)(a) to (c) if the court determines that those prohibitions are inconsistent with any similar prohibitions imposed in the proceedings under this Act.

  • 2005, c. 47, s. 122.
Marginal note:Multiple foreign proceedings
  •  (1) If, at any time after an order is made in respect of a foreign non-main proceeding in respect of a debtor, an order recognizing a foreign main proceeding is made in respect of the debtor, the court shall review any order made under section 272 in respect of the foreign non-main proceeding and, if it determines that the order is inconsistent with any orders made under that section in respect of the foreign main proceedings, the court shall amend or revoke the order.

  • Marginal note:Multiple foreign proceedings

    (2) If, at any time after an order is made in respect of a foreign non-main proceeding in respect of the debtor, an order recognizing another foreign non-main proceeding is made in respect of the debtor, the court shall, for the purpose of facilitating the coordination of the foreign non-main proceedings, review any order made under section 272 in respect of the first recognized proceeding and amend or revoke that order if it considers it appropriate.

  • 2005, c. 47, s. 122.

Miscellaneous Provisions

Marginal note:Authorization to act as representative of proceeding under this Act

 The court may authorize any person or body to act as a representative in respect of any proceeding under this Act for the purpose of having them recognized in a jurisdiction outside Canada.

  • 2005, c. 47, s. 122.
Marginal note:Foreign representative status

 An application by a foreign representative for any order under this Part does not submit the foreign representative to the jurisdiction of the court for any other purpose except with regard to the costs of the proceedings, but the court may make any order under this Part conditional on the compliance by the foreign representative with any other court order.

  • 2005, c. 47, s. 122.
Marginal note:Foreign proceeding appeal

 A foreign representative is not prevented from making an application to the court under this Part by reason only that proceedings by way of appeal or review have been taken in a foreign proceeding, and the court may, on an application if such proceedings have been taken, grant relief as if the proceedings had not been taken.

  • 2005, c. 47, s. 122.
Marginal note:Presumption of insolvency

 For the purposes of this Part, if a bankruptcy, an insolvency or a reorganization or a similar order has been made in respect of a debtor in a foreign proceeding, a certified copy of the order is, in the absence of evidence to the contrary, proof that the debtor is insolvent and proof of the appointment of the foreign representative made by the order.

  • 2005, c. 47, s. 122.
Marginal note:Credit for recovery in other jurisdictions
  •  (1) If a bankruptcy order, a proposal or an assignment is made in respect of a debtor under this Act, the following shall be taken into account in the distribution of dividends to the debtor’s creditors in Canada as if they were a part of that distribution:

    • (a) the amount that a creditor receives or is entitled to receive outside Canada by way of a dividend in a foreign proceeding in respect of the debtor; and

    • (b) the value of any property of the debtor that the creditor acquires outside Canada on account of a provable claim of the creditor or that the creditor acquires outside Canada by way of a transfer that, if the transfer were subject to this Act, would be a preference over other creditors or a transfer at undervalue.

  • Marginal note:Restriction

    (2) Despite subsection (1), the creditor is not entitled to receive a dividend from the distribution in Canada until every other creditor who has a claim of equal rank in the order of priority established under this Act has received a dividend whose amount is the same percentage of that other creditor’s claim as the aggregate of the amount referred to in paragraph (1)(a) and the value referred to in paragraph (1)(b) is of that creditor’s claim.

  • 2005, c. 47, s. 122.
Marginal note:Court not prevented from applying certain rules
  •  (1) Nothing in this Part prevents the court, on the application of a foreign represent­ative or any other interested person, from applying any legal or equitable rules governing the recognition of foreign insolvency orders and assistance to foreign representatives that are not inconsistent with the provisions of this Act.

  • Marginal note:Public policy exception

    (2) Nothing in this Part prevents the court from refusing to do something that would be contrary to public policy.

  • 2005, c. 47, s. 122;
  • 2007, c. 36, s. 60.

PART XIVReview of Act

Marginal note:Review of Act
  •  (1) Within five years after the coming into force of this section, the Minister shall cause to be laid before both Houses of Parliament a report on the provisions and operation of this Act, including any recommendations for amendments to those provisions.

  • Marginal note:Reference to parliamentary committee

    (2) The report stands referred to the committee of the Senate, the House of Commons or both Houses of Parliament that is designated or established for that purpose, which shall

    • (a) as soon as possible after the laying of the report, review the report; and

    • (b) report to the Senate, the House of Commons or both Houses of Parliament, as the case may be, within one year after the laying of the Minister’s report, or any further time authorized by the Senate, the House of Commons or both Houses of Parliament.

  • 2005, c. 47, s. 122.
 
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