Trust and Loan Companies Act (S.C. 1991, c. 45)

Act current to 2014-10-27 and last amended on 2013-12-12. Previous Versions

Court-supervised Liquidation

Marginal note:Application for court supervision
  •  (1) The Superintendent or any interested person may, at any time during the liquidation of a company, apply to a court for an order for the continuance of the voluntary liquidation under the supervision of the court in accordance with this section and sections 353 to 365 and on such application the court may so order and make any further order it thinks fit.

  • Marginal note:Idem

    (2) An application under subsection (1) to a court to supervise a voluntary liquidation shall state the reasons, verified by an affidavit of the applicant, why the court should supervise the liquidation.

  • Marginal note:Notice to Superintendent

    (3) Where a person, other than the Superintendent, makes an application under subsection (1), the person shall give the Superintendent notice of the application and the Superintendent may appear and be heard in person or by counsel at the hearing of the application.

Marginal note:Court supervision thereafter
  •  (1) When a court makes an order under subsection 352(1), the liquidation of the company shall continue under the supervision of the court.

  • Marginal note:Commencement of liquidation

    (2) The supervision of the liquidation of a company by the court pursuant to an order made under subsection 352(1) commences on the day the order is made.

Marginal note:Powers of court

 In connection with the liquidation and dissolution of a company, the court may, where it is satisfied

  • (a) that the company is able to pay or adequately provide for the discharge of all its obligations, and

  • (b) in the case of a company that is a trust company pursuant to subsection 57(2), that the company is able to make satisfactory arrangements for the protection of persons in relation to whom the company is acting in a fiduciary capacity,

make any order it thinks fit including, without limiting the generality of the foregoing,

  • (c) an order to liquidate,

  • (d) an order appointing a liquidator, with or without security, fixing a liquidator’s remuneration and replacing a liquidator,

  • (e) an order appointing inspectors or referees, specifying their powers, fixing their remuneration and replacing inspectors or referees,

  • (f) an order determining the notice to be given to any interested person, or dispensing with notice to any person,

  • (g) an order determining the validity of any claims made against the company,

  • (h) an order, at any stage of the proceedings, restraining the directors and officers of the company from

    • (i) exercising any of their powers, or

    • (ii) collecting or receiving any debt or other property of the company, and from paying out or transferring any property of the company, except as permitted by the court,

  • (i) an order determining and enforcing the duty or liability of any present or former director, officer or shareholder

    • (i) to the company, or

    • (ii) for an obligation of the company,

  • (j) an order approving the payment, satisfaction or compromise of claims against the company and the retention of assets for that purpose, and determining the adequacy of provisions for the payment, discharge or transfer of any trust obligation or other obligation of the company, whether liquidated, unliquidated, future or contingent,

  • (k) with the concurrence of the Superintendent, an order providing for the disposal or destruction of the documents, records or registers of the company,

  • (l) on the application of a creditor, an inspector or the liquidator, an order giving directions on any matter arising in the liquidation,

  • (m) after notice has been given to all interested parties, an order relieving the liquidator from any omission or default on such terms as the court thinks fit and confirming any act of the liquidator,

  • (n) subject to sections 361 to 363, an order approving any proposed, interim or final distribution to shareholders, if any, or incorporators, in money or in property,

  • (o) an order disposing of any property belonging to creditors, shareholders and incorporators who cannot be found,

  • (p) on the application of any director, officer, shareholder, incorporator, creditor or the liquidator,

    • (i) an order staying the liquidation proceedings on such terms and conditions as the court thinks fit,

    • (ii) an order continuing or discontinuing the liquidation proceedings, or

    • (iii) an order to the liquidator to restore to the company all of its remaining property, and

  • (q) after the liquidator has rendered the liquidator’s final account to the court, an order directing the company to apply to the Minister for letters patent dissolving the company.

  • 1991, c. 45, s. 354;
  • 2005, c. 54, s. 442(F).