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

Act current to 2016-06-06 and last amended on 2015-02-26. Previous Versions

Marginal note:Investigations
  •  (1) The Superintendent of Bankruptcy may make, or cause to be made, any inquiry or investigation regarding the conduct of monitors that he or she considers appropriate.

  • Marginal note:Rights

    (2) For the purpose of the inquiry or investigation, the Superintendent of Bankruptcy or any person whom he or she appoints for the purpose

    • (a) shall have access to and the right to examine and make copies of the books, records, data, documents or papers — including those in electronic form — in the possession or under the control of a monitor under this Act; and

    • (b) may, with the leave of the court granted on an ex parte application, examine the books, records, data, documents or papers — including those in electronic form — relating to any compromise or arrangement in respect of which this Act applies that are in the possession or under the control of any other person designated in the order granting the leave, and for that purpose may under a warrant from the court enter and search any premises.

  • Marginal note:Staff

    (3) The Superintendent of Bankruptcy may engage the services of persons having technical or specialized knowledge, and persons to provide administrative services, to assist the Superintendent of Bankruptcy in conducting an inquiry or investigation, and may establish the terms and conditions of their engagement. The remuneration and expenses of those persons, when certified by the Superintendent of Bankruptcy, are payable out of the appropriation for the office of the Superintendent.

  • 2005, c. 47, s. 131;
  • 2007, c. 36, s. 74.
Marginal note:Powers in relation to licence
  •  (1) If, after making or causing to be made an inquiry or investigation into the conduct of a monitor, it appears to the Superintendent of Bankruptcy that the monitor has not fully complied with this Act and its regulations or that it is in the public interest to do so, the Superintendent of Bankruptcy may

    • (a) cancel or suspend the monitor’s licence as a trustee under the Bankruptcy and Insolvency Act; or

    • (b) place any condition or limitation on the licence that he or she considers appropriate.

  • Marginal note:Notice to trustee

    (2) Before deciding whether to exercise any of the powers referred to in subsection (1), the Superintendent of Bankruptcy shall send the monitor written notice of the powers that the Superintendent may exercise and the reasons why they may be exercised and afford the monitor a reasonable opportunity for a hearing.

  • Marginal note:Summons

    (3) The Superintendent of Bankruptcy may, for the purpose of the hearing, issue a summons requiring the person named in it

    • (a) to appear at the time and place mentioned in it;

    • (b) to testify to all matters within their knowledge relative to the subject matter of the inquiry or investigation into the conduct of the monitor; and

    • (c) to bring and produce any books, records, data, documents or papers — including those in electronic form — in their possession or under their control relative to the subject matter of the inquiry or investigation.

  • Marginal note:Effect throughout Canada

    (4) A person may be summoned from any part of Canada by virtue of a summons issued under subsection (3).

  • Marginal note:Fees and allowances

    (5) Any person summoned under subsection (3) is entitled to receive the like fees and allowances for so doing as if summoned to attend before the Federal Court.

  • Marginal note:Procedure at hearing

    (6) At the hearing, the Superintendent of Bankruptcy

    • (a) has the power to administer oaths;

    • (b) is not bound by any legal or technical rules of evidence in conducting the hearing;

    • (c) shall deal with the matters set out in the notice of the hearing as informally and expeditiously as the circumstances and a consideration of fairness permit; and

    • (d) shall cause a summary of any oral evidence to be made in writing.

  • Marginal note:Record

    (7) The notice referred to in subsection (2) and, if applicable, the summary of oral evidence referred to in paragraph (6)(d), together with any documentary evidence that the Superintend­ent of Bankruptcy receives in evidence, form the record of the hearing, and that record and the hearing are public unless the Superintendent of Bankruptcy is satisfied that personal or other matters that may be disclosed are of such a nature that the desirability of avoiding public disclosure of those matters, in the interest of a third party or in the public interest, outweighs the desirability of the access by the public to information about those matters.

  • Marginal note:Decision

    (8) The decision of the Superintendent of Bankruptcy after the hearing, together with the reasons for the decision, must be given in writing to the monitor not later than three months after the conclusion of the hearing, and is public.

  • Marginal note:Review by Federal Court

    (9) A decision of the Superintendent of Bankruptcy given under subsection (8) is deemed to be a decision of a federal board, commission or other tribunal that may be reviewed and set aside under the Federal Courts Act.

  • 2005, c. 47, s. 131;
  • 2007, c. 36, s. 75.
Marginal note:Delegation
  •  (1) The Superintendent of Bankruptcy may, in writing, authorize any person to exercise or perform, subject to any terms and conditions that he or she may specify in the authorization, any of the powers, duties or functions of the Superintendent of Bankruptcy under sections 29 and 30.

  • Marginal note:Notification to monitor

    (2) If the Superintendent of Bankruptcy delegates in accordance with subsection (1), the Superintendent or the delegate must give notice of the delegation in the prescribed manner to any monitor who may be affected by the delegation.

  • 2005, c. 47, s. 131.

Agreements

Marginal note:Disclaimer or resiliation of agreements
  •  (1) Subject to subsections (2) and (3), a debtor company may — on notice given in the prescribed form and manner to the other parties to the agreement and the monitor — disclaim or resiliate any agreement to which the company is a party on the day on which proceedings commence under this Act. The company may not give notice unless the monitor approves the proposed disclaimer or resiliation.

  • Marginal note:Court may prohibit disclaimer or resiliation

    (2) Within 15 days after the day on which the company gives notice under subsection (1), a party to the agreement may, on notice to the other parties to the agreement and the monitor, apply to a court for an order that the agreement is not to be disclaimed or resiliated.

  • Marginal note:Court-ordered disclaimer or resiliation

    (3) If the monitor does not approve the proposed disclaimer or resiliation, the company may, on notice to the other parties to the agreement and the monitor, apply to a court for an order that the agreement be disclaimed or resiliated.

  • Marginal note:Factors to be considered

    (4) In deciding whether to make the order, the court is to consider, among other things,

    • (a) whether the monitor approved the proposed disclaimer or resiliation;

    • (b) whether the disclaimer or resiliation would enhance the prospects of a viable compromise or arrangement being made in respect of the company; and

    • (c) whether the disclaimer or resiliation would likely cause significant financial hardship to a party to the agreement.

  • Marginal note:Date of disclaimer or resiliation

    (5) An agreement is disclaimed or resiliated

    • (a) if no application is made under subsection (2), on the day that is 30 days after the day on which the company gives notice under subsection (1);

    • (b) if the court dismisses the application made under subsection (2), on the day that is 30 days after the day on which the company gives notice under subsection (1) or on any later day fixed by the court; or

    • (c) if the court orders that the agreement is disclaimed or resiliated under subsection (3), on the day that is 30 days after the day on which the company gives notice or on any later day fixed by the court.

  • Marginal note:Intellectual property

    (6) If the company has granted a right to use intellectual property to a party to an agreement, the disclaimer or resiliation does not affect the party’s right to use the intellectual property — including the party’s right to enforce an exclusive use — during the term of the agreement, including any period for which the party extends the agreement as of right, as long as the party continues to perform its obligations under the agreement in relation to the use of the intellectual property.

  • Marginal note:Loss related to disclaimer or resiliation

    (7) If an agreement is disclaimed or resiliated, a party to the agreement who suffers a loss in relation to the disclaimer or resiliation is considered to have a provable claim.

  • Marginal note:Reasons for disclaimer or resiliation

    (8) A company shall, on request by a party to the agreement, provide in writing the reasons for the proposed disclaimer or resiliation within five days after the day on which the party requests them.

  • Marginal note:Exceptions

    (9) This section does not apply in respect of

    • (a) an eligible financial contract;

    • (b) a collective agreement;

    • (c) a financing agreement if the company is the borrower; or

    • (d) a lease of real property or of an immovable if the company is the lessor.

  • 2005, c. 47, s. 131;
  • 2007, c. 29, s. 108, c. 36, ss. 76, 112.
 
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