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

Act current to 2014-09-15 and last amended on 2013-04-01. Previous Versions

Marginal note:Credit for recovery in other jurisdictions
  •  (1) In making a compromise or an arrangement of a debtor company, the following shall be taken into account in the distribution of dividends to the company’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 company; and

    • (b) the value of any property of the company 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 it 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. 131.
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. 131;
  • 2007, c. 36, s. 81.

PART VADMINISTRATION

Marginal note:Regulations

 The Governor in Council may make regulations for carrying out the purposes and provisions of this Act, including regulations

  • (a) specifying documents for the purpose of paragraph 23(1)(f); and

  • (b) prescribing anything that by this Act is to be prescribed.

  • 2005, c. 47, s. 131;
  • 2007, c. 36, s. 82.
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 report of the Minister, or any further time authorized by the Senate, the House of Commons or both Houses of Parliament.

  • 2005, c. 47, s. 131.