Bankruptcy and Insolvency Act

Marginal note:Right of creditor to vote

• 109 (1) A person is not entitled to vote as a creditor at any meeting of creditors unless he has duly proved a claim provable in bankruptcy and the proof of claim has been duly lodged 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:Creditor not dealing at arm’s length

  (6) Except as otherwise provided by this Act, a creditor is not entitled to vote at any meeting of creditors if the creditor did not, at all times within the period beginning on the day that is one year before the date of the initial bankruptcy event in respect of the debtor and ending on the date of the bankruptcy, both dates included, deal with the debtor at arm’s length.

• Marginal note:Exception

  (7) A creditor who is not entitled to vote at a meeting of creditors by virtue of subsection (6) may with leave of the court vote at the meeting of creditors when all the creditors who have dealt with the debtor at arm’s length do not together represent at least twenty per cent in value of the claims against the debtor.