Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3)

Act current to 2017-11-20 and last amended on 2017-09-21. Previous Versions

Trustees

Licensing of Trustees

Marginal note:Application for licence
  •  (1) A person who wishes to obtain a licence to act as a trustee shall file with the Superintendent an application for a licence in the prescribed form.

  • Marginal note:Conditions of eligibility

    (2) The Superintendent, after such investigation concerning an applicant for a licence to act as a trustee as the Superintendent considers necessary, may issue the licence if the Superintendent is satisfied, having regard to the criteria referred to in paragraph 5(4)(d), that the applicant is qualified to obtain the licence.

  • Marginal note:Non-eligibility

    (3) The Superintendent may refuse to issue a licence to an applicant who is insolvent or has been found guilty of an indictable offence that, in the Superintendent’s opinion, is of a character that would impair the trustee’s capacity to perform his or her fiduciary duties.

  • R.S., 1985, c. B-3, s. 13;
  • 1992, c. 27, s. 9;
  • 1997, c. 12, s. 6;
  • 2005, c. 47, s. 9.
Marginal note:Form of licence

 A licence shall

  • (a) be in the prescribed form;

  • (b) specify the bankruptcy district or part thereof in which the trustee is entitled to act; and

  • (c) be subject to such conditions and limitations as the Superintendent considers appropriate and may specify therein.

  • 1992, c. 27, s. 9;
  • 1997, c. 12, s. 7.
Marginal note:Fees payable
  •  (1) Prior to the issue of a licence, the applicant shall pay such fees as may be prescribed.

  • Marginal note:Idem

    (2) On the December 31 following the day on which a licence is issued, and on December 31 in each year thereafter, the trustee shall pay such fees as may be prescribed.

  • Marginal note:When licence invalid

    (3) A licence ceases to be valid on the failure of the trustee to pay a fee in accordance with subsection (2) or if the trustee becomes bankrupt.

  • Marginal note:Superintendent may reinstate licence

    (4) Where a licence has ceased to be valid by reason of

    • (a) failure to pay fees, the Superintendent may reinstate it where the trustee pays the outstanding fees together with a prescribed penalty amount and provides a reasonable written explanation of the failure to pay them in accordance with subsection (2); or

    • (b) the trustee becoming bankrupt, the Superintendent may, on written representations made by the trustee, reinstate the licence subject to such conditions and limitations as the Superintendent considers appropriate and may specify therein.

  • Marginal note:Suspension or cancellation

    (5) A licence may be suspended or cancelled by the Superintendent

    • (a) if the trustee has been found guilty of an indictable offence that, in the Superintendent’s opinion, is of a character that would impair the trustee’s capacity to perform his or her fiduciary duties;

    • (b) if the trustee has failed to comply with any of the conditions or limitations to which the licence is subject;

    • (c) if the trustee has ceased to act as a trustee; or

    • (d) at the request of the trustee.

  • Marginal note:Notice of intended decision

    (6) Notice of an intended decision under subsection (5) shall be in writing setting out the Superintendent’s reasons therefor and shall be sent to the trustee at least ten days before the decision takes effect.

  • Marginal note:Conditions

    (7) If a licence ceases to be valid by virtue of subsection (3) or is suspended or cancelled under subsection (5), the Superintendent may impose on the trustee any requirements that the Superintendent considers appropriate, including a requirement that the trustee provide security for the protection of an estate.

  • Marginal note:Non-application of procedure

    (8) For greater certainty, section 14.02 does not apply in respect of a suspension or cancellation of a licence under subsection (5).

  • 1992, c. 27, s. 9;
  • 1997, c. 12, s. 8;
  • 2004, c. 25, s. 12;
  • 2005, c. 47, s. 10.

Conduct of Trustees

Marginal note:Where trustee is not qualified to act
  •  (1) Except with the permission of the court and on such conditions as the court may impose, no trustee shall act as trustee in relation to the estate of a debtor

    • (a) where the trustee is, or at any time during the two preceding years was,

      • (i) a director or officer of the debtor,

      • (ii) an employer or employee of the debtor or of a director or officer of the debtor,

      • (iii) related to the debtor or to any director or officer of the debtor, or

      • (iv) the auditor, accountant or legal counsel, or a partner or an employee of the auditor, accountant or legal counsel, of the debtor; or

    • (b) where the trustee is

      • (i) the trustee under a trust indenture issued by the debtor or any person related to the debtor, or the holder of a power of attorney under an act constituting a hypothec within the meaning of the Civil Code of Québec that is granted by the debtor or any person related to the debtor, or

      • (ii) related to the trustee, or the holder of a power of attorney, referred to in subparagraph (i).

  • Marginal note:Copy of application to Superintendent

    (1.1) A trustee who applies for the permission of the court for the purposes of subsection (1) shall without delay send a copy of the application to the Superintendent.

  • Marginal note:Where disclosure required

    (2) No trustee shall act as a trustee in relation to the estate of a debtor where the trustee is already

    • (a) the trustee in the bankruptcy of, or in a proposal concerning, any person related to the debtor, or

    • (b) the receiver, within the meaning of subsection 243(2), or the liquidator of the property of any person related to the debtor,

    without making, at the time of being appointed as trustee in relation to the estate of the debtor and at the first meeting of creditors, full disclosure of that fact and of the potential conflict of interest.

  • 1992, c. 27, s. 9;
  • 1997, c. 12, s. 9(F);
  • 2004, c. 25, s. 13;
  • 2005, c. 47, s. 11;
  • 2007, c. 36, s. 4(F).
Marginal note:Trustee may act for secured creditor
  •  (1) No trustee may, while acting as the trustee of an estate, act for or assist a secured creditor to assert a claim against the estate or to realize or otherwise deal with a security that the secured creditor holds, unless the trustee has obtained a written opinion from independent legal counsel that the security is valid and enforceable against the estate.

  • Marginal note:Notification by trustee

    (1.1) Forthwith on commencing to act for or assist a secured creditor of the estate in the manner set out in subsection (1), a trustee shall notify the Superintendent and the creditors or the inspectors

    • (a) that the trustee is acting for the secured creditor;

    • (b) of the basis of any remuneration from the secured creditor; and

    • (c) of the opinion referred to in subsection (1).

  • Marginal note:Trustee to provide opinion

    (2) Within two days after receiving a request therefor, a trustee shall provide the Superintendent with a copy of the opinion referred to in subsection (1) and shall also provide a copy to each creditor who has made a request therefor.

  • 1992, c. 27, s. 9;
  • 1997, c. 12, s. 10;
  • 2004, c. 25, s. 14(E);
  • 2005, c. 47, s. 12;
  • 2007, c. 36, s. 5.
Marginal note:Code of Ethics

 A trustee shall comply with the prescribed Code of Ethics.

  • 1992, c. 27, s. 9;
  • 2005, c. 47, s. 13.
Marginal note:Persons disqualified from working for trustee

 A trustee shall not engage the services of a person

  • (a) whose trustee licence has been cancelled under paragraph 13.2(5)(a) or subsection 14.01(1); or

  • (b) who is the subject of a direction made by the Superintendent under paragraph 14.03(1)(d).

  • 1997, c. 12, s. 11;
  • 2005, c. 47, s. 13.
 
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