Companies’ Creditors Arrangement Act (R.S.C., 1985, c. C-36)

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

Marginal note:Application
  •  (1) This Act applies in respect of a debtor company or affiliated debtor companies if the total of claims against the debtor company or affiliated debtor companies, determined in accordance with section 20, is more than $5,000,000 or any other amount that is prescribed.

  • Marginal note:Affiliated companies

    (2) For the purposes of this Act,

    • (a) companies are affiliated companies if one of them is the subsidiary of the other or both are subsidiaries of the same company or each of them is controlled by the same person; and

    • (b) two companies affiliated with the same company at the same time are deemed to be affiliated with each other.

  • Marginal note:Company controlled

    (3) For the purposes of this Act, a company is controlled by a person or by two or more companies if

    • (a) securities of the company to which are attached more than fifty per cent of the votes that may be cast to elect directors of the company are held, other than by way of security only, by or for the benefit of that person or by or for the benefit of those companies; and

    • (b) the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the company.

  • Marginal note:Subsidiary

    (4) For the purposes of this Act, a company is a subsidiary of another company if

    • (a) it is controlled by

      • (i) that other company,

      • (ii) that other company and one or more companies each of which is controlled by that other company, or

      • (iii) two or more companies each of which is controlled by that other company; or

    • (b) it is a subsidiary of a company that is a subsidiary of that other company.

  • R.S., 1985, c. C-36, s. 3;
  • 1997, c. 12, s. 121;
  • 2005, c. 47, s. 125.

PART ICOMPROMISES AND ARRANGEMENTS

Marginal note:Compromise with unsecured creditors

 Where a compromise or an arrangement is proposed between a debtor company and its unsecured creditors or any class of them, the court may, on the application in a summary way of the company, of any such creditor or of the trustee in bankruptcy or liquidator of the company, order a meeting of the creditors or class of creditors, and, if the court so determines, of the shareholders of the company, to be summoned in such manner as the court directs.

  • R.S., c. C-25, s. 4.
Marginal note:Compromise with secured creditors

 Where a compromise or an arrangement is proposed between a debtor company and its secured creditors or any class of them, the court may, on the application in a summary way of the company or of any such creditor or of the trustee in bankruptcy or liquidator of the company, order a meeting of the creditors or class of creditors, and, if the court so determines, of the shareholders of the company, to be summoned in such manner as the court directs.

  • R.S., c. C-25, s. 5.