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

Act current to 2015-10-27 and last amended on 2015-02-26. Previous Versions

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.
Marginal note:Creditors may override directions of inspectors
  •  (1) Subject to this Act, the trustee shall in the administration of the property of the bankrupt and in the distribution thereof among his creditors have regard to any directions that may be given by resolution of the creditors at any general meeting or by the inspectors, and any directions so given by the creditors shall in case of conflict be deemed to override any directions given by the inspectors.

  • Marginal note:Decisions of inspectors subject to review by court

    (2) The decisions and actions of the inspectors are subject to review by the court at the instance of the trustee or any interested person and the court may revoke or vary any act or decision of the inspectors and it may give such directions, permission or authority as it deems proper in substitution thereof or may refer any matter back to the inspectors for reconsideration.

  • R.S., c. B-3, s. 94.
Marginal note:Inspector may not acquire property
  •  (1) No inspector is, directly or indirectly, capable of purchasing or acquiring for himself or for another any of the property of the estate for which he is an inspector, except with the prior approval of the court.

  • Marginal note:Formal defects

    (2) No defect or irregularity in the appointment of an inspector vitiates any act done by him in good faith.

  • Marginal note:Duty of inspectors

    (3) In addition to the other duties that are attributed to them under this Act, the inspectors shall from time to time verify the bank balance of the estate, examine the trustee’s accounts and inquire into the adequacy of the security filed by the trustee and, subject to subsection (4), shall approve the trustee’s final statement of receipts and disbursements, dividend sheet and disposition of unrealized property.

  • Marginal note:Approval of trustee’s final statement by inspectors

    (4) Before approving the final statement of receipts and disbursements of the trustee, the inspectors shall satisfy themselves that all the property has been accounted for and that the administration of the estate has been completed as far as can reasonably be done and shall determine whether or not the disbursements and expenses incurred are proper and have been duly authorized, and the fees and remuneration just and reasonable in the circumstances.

  • Marginal note:inspector’s expenses and fees

    (5) Each inspector

    • (a) may be repaid actual and necessary travel expenses incurred in relation to the performance of the inspector’s duties; and

    • (b) may be paid such fees per meeting as are prescribed.

  • Marginal note:Special services

    (6) An inspector duly authorized by the creditors or by the other inspectors to perform special services for the estate may be allowed a special fee for those services, subject to approval of the court, which may vary that fee as it deems proper having regard to the nature of the services rendered in relation to the obligations of the inspector to the estate to act in good faith for the general interests of the administration of the estate.

  • R.S., 1985, c. B-3, s. 120;
  • 1992, c. 27, s. 49;
  • 2001, c. 4, s. 30;
  • 2004, c. 25, s. 65(F);
  • 2005, c. 47, s. 85.