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

Act current to 2017-11-06 and last amended on 2017-09-21. Previous Versions

Marginal note:Books to be kept by trustee
  •  (1) The trustee shall keep proper books and records of the administration of each estate to which he is appointed, in which shall be entered a record of all moneys received or disbursed by him, a list of all creditors filing claims, the amount and disposition of those claims, a copy of all notices sent out, the original signed copy of all minutes, proceedings had, and resolutions passed at any meeting of creditors or inspectors, court orders and all such other matters or proceedings as may be necessary to give a complete account of his administration of the estate.

  • Marginal note:Trustee’s records to be property of estate

    (2) The estate books, records and documents relating to the administration of an estate are deemed to be the property of the estate, and, in the event of any change of trustee, shall forthwith be delivered to the substituted trustee.

  • Marginal note:Records may be inspected

    (3) The trustee shall permit the books, records and documents referred to in subsection (2) to be inspected and copies of them made by the Superintendent, the bankrupt or any creditor or their representative at any reasonable time.

  • R.S., 1985, c. B-3, s. 26;
  • 1997, c. 12, s. 20;
  • 2004, c. 25, s. 21.
Marginal note:Reports by trustee
  •  (1) The trustee shall from time to time report,

    • (a) when required by the inspectors, to every creditor,

    • (b) when required by any specific creditor, to the creditor, and

    • (c) when required by the Superintendent, to the Superintendent or the creditors,

    showing the condition of the bankrupt’s estate, the moneys on hand, if any, and particulars of any property remaining unsold.

  • Marginal note:Disbursements

    (2) The trustee is entitled to charge against the estate of the bankrupt, for the preparation and delivery of any report referred to in subsection (1), only his actual disbursements.

  • R.S., c. B-3, s. 13.
Marginal note:Documents to be forwarded to Superintendent
  •  (1) The trustee shall, without delay after their receipt or preparation, send to the Superintendent, in the prescribed manner, true copies of the documents referred to in section 155 and a true copy of

    • (a) the notice referred to in section 102,

    • (b) the statement referred to in paragraph 158(d),

    • (c) the trustee’s final statement of receipts and disbursements and the dividend sheet, and

    • (d) every order made by the court on the application for discharge of a bankrupt or annulling any bankruptcy,

    and file a copy of the documents referred to in paragraphs (b) and (c) in the court.

  • Marginal note:Notices, etc., to be forwarded to Superintendent

    (2) The trustee shall forward promptly to the Superintendent copies of all notices, reports and statements sent by him to the creditors and, when required, copies of such other documents as the Superintendent may specify.

  • R.S., 1985, c. B-3, s. 28;
  • 1992, c. 1, s. 12, c. 27, s. 11;
  • 2005, c. 47, s. 21.
Marginal note:Duty of trustee on expiration of licence or removal
  •  (1) Where

    • (a) the licence of a trustee has been cancelled or suspended, or has ceased to be valid by reason of failure to pay fees,

    • (b) a trustee has been removed from continuing the administration of an estate, or

    • (c) a trustee dies or becomes incapacitated,

    the trustee or the legal representative of the trustee shall, within such time as is fixed by the Superintendent, prepare and forward to the Superintendent a detailed financial statement of the receipts and disbursements together with a list of and report on the unadministered property of every estate under the trustee’s administration for which the trustee has not been discharged, and shall forward to such other trustee as may be appointed in the trustee’s stead or, pending the appointment of the other trustee, to the official receiver all the remaining property of every estate under the trustee’s administration together with all the books, records and documents relating thereto.

  • (2) [Repealed, 2005, c. 47, s. 22]

  • R.S., 1985, c. B-3, s. 29;
  • 1997, c. 12, s. 21;
  • 2005, c. 47, s. 22.
Marginal note:Powers exercisable by trustee with permission of inspectors
  •  (1) The trustee may, with the permission of the inspectors, do all or any of the following things:

    • (a) sell or otherwise dispose of for such price or other consideration as the inspectors may approve all or any part of the property of the bankrupt, including the goodwill of the business, if any, and the book debts due or growing due to the bankrupt, by tender, public auction or private contract, with power to transfer the whole thereof to any person or company, or to sell the same in parcels;

    • (b) lease any real property or immovable;

    • (c) carry on the business of the bankrupt, in so far as may be necessary for the beneficial administration of the estate of the bankrupt;

    • (d) bring, institute or defend any action or other legal proceeding relating to the property of the bankrupt;

    • (e) employ a barrister or solicitor or, in the Province of Quebec, an advocate, or employ any other representative, to take any proceedings or do any business that may be sanctioned by the inspectors;

    • (f) accept as the consideration for the sale of any property of the bankrupt a sum of money payable at a future time, subject to such stipulations as to security and otherwise as the inspectors think fit;

    • (g) incur obligations, borrow money and give security on any property of the bankrupt by mortgage, hypothec, charge, lien, assignment, pledge or otherwise, such obligations and money borrowed to be discharged or repaid with interest out of the property of the bankrupt in priority to the claims of the creditors;

    • (h) compromise and settle any debts owing to the bankrupt;

    • (i) compromise any claim made by or against the estate;

    • (j) divide in its existing form among the creditors, according to its estimated value, any property that from its peculiar nature or other special circumstances cannot be readily or advantageously sold;

    • (k) elect to retain for the whole part of its unexpired term, or to assign, surrender, disclaim or resiliate any lease of, or other temporary interest or right in, any property of the bankrupt; and

    • (l) appoint the bankrupt to aid in administering the estate of the bankrupt in such manner and on such terms as the inspectors may direct.

  • Marginal note:Permission limited to particular thing or class

    (2) The permission given for the purposes of subsection (1) is not a general permission to do all or any of the things mentioned in that subsection, but is only a permission to do the particular thing or things or class of thing or things that the permission specifies.

  • Marginal note:If no inspectors

    (3) If no inspectors are appointed, the trustee may do all or any of the things referred to in subsection (1).

  • Marginal note:Sale or disposal to related persons

    (4) The trustee may sell or otherwise dispose of any of the bankrupt’s property to a person who is related to the bankrupt only with the court’s authorization.

  • Marginal note:Related persons

    (5) For the purpose of subsection (4), in the case of a bankrupt other than an individual, a person who is related to the bankrupt includes

    • (a) a director or officer of the bankrupt;

    • (b) a person who has or has had, directly or indirectly, control in fact of the bankrupt; and

    • (c) a person who is related to a person described in paragraph (a) or (b).

  • Marginal note:Factors to be considered

    (6) In deciding whether to grant the authorization, the court is to consider, among other things,

    • (a) whether the process leading to the proposed sale or disposition of the property was reasonable in the circumstances;

    • (b) the extent to which the creditors were consulted;

    • (c) the effects of the proposed sale or disposition on creditors and other interested parties;

    • (d) whether the consideration to be received for the property is reasonable and fair, taking into account the market value of the property;

    • (e) whether good faith efforts were made to sell or otherwise dispose of the property to persons who are not related to the bankrupt; and

    • (f) whether the consideration to be received is superior to the consideration that would be received under any other offer made in accordance with the process leading to the proposed sale or disposition of the property.

  • R.S., 1985, c. B-3, s. 30;
  • 1997, c. 12, s. 22(F);
  • 2004, c. 25, s. 22;
  • 2005, c. 47, s. 23;
  • 2007, c. 36, s. 10.
 
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