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Marginal note:Terminology change — chairman

 The English version of the Act is amended by replacing the word “chairman” with the word “chair” wherever it occurs in the following provisions:

  • (a) subsection 36(2):

  • (b) subsection 51(3);

  • (c) section 52;

  • (d) section 66.16;

  • (e) sections 105 and 106;

  • (f) section 108; and

  • (g) section 114.

AMENDMENTS TO THE COMPANIES’ CREDITORS ARRANGEMENT ACT

  •  (1) Section 2 of the Companies’ Creditors Arrangement Act is renumbered as subsection 2(1).

  • (2) The definitions “company” and “shareholder” in subsection 2(1) of the Act are replaced by the following:

    “company”

    « compagnie »

    “company” means any company, corporation or legal person incorporated by or under an Act of Parliament or of the legislature of a province, any incorporated company having assets or doing business in Canada, wherever incorporated, and any income trust, but does not include banks, authorized foreign banks within the meaning of section 2 of the Bank Act, railway or telegraph companies, insurance companies and companies to which the Trust and Loan Companies Act applies;

    “shareholder”

    « actionnaire »

    “shareholder” means a shareholder, member or holder of any units of any company to which this Act applies;

  • (3) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

    “bargaining agent”

    « agent négociateur »

    “bargaining agent” means any trade union that has entered into a collective agreement on behalf of the employees of a company;

    “cash-flow statement”

    « état de l’évolution de l’encaisse »

    “cash-flow statement”, in respect of a company, means the statement referred to in paragraph 10(2)(a) indicating the company’s projected cash flow;

    “claim”

    « réclamation »

    “claim” means any indebtedness, liability or obligation of any kind that would be a claim provable within the meaning of section 2 of the Bankruptcy and Insolvency Act;

    “collective agreement”

    « convention collective »

    “collective agreement”, in relation to a debtor company, means a collective agreement within the meaning of the jurisdiction governing collective bargaining between the debtor company and a bargaining agent;

    “director”

    « administra- teur »

    “director”, in respect of a company, includes any person, however designated, acting in any capacity that is similar to that of a director of a corporation and, in respect of an income trust, includes its trustee;

    “income trust”

    « fiducie de revenu »

    “income trust” means a trust

    • (a) that has assets in Canada, and

    • (b) the units of which are traded on a prescribed stock exchange;

    “initial application”

    « demande initiale »

    “initial application” means the first application made under this Act in respect of a company;

    “monitor”

    « contrôleur »

    “monitor”, in respect of a company, means the person appointed under section 11.7 to monitor the business and financial affairs of the company;

    “Superintendent of Bankruptcy”

    « surintendant des faillites »

    “Superintendent of Bankruptcy” means the Superintendent of Bankruptcy appointed under subsection 5(1) of the Bankruptcy and Insolvency Act;

  • (4) Subsection 2(1) of the English version of the Act is amended by adding the following in alphabetical order:

    “prescribed”

    Marginal note:Version anglaise seulement

    “prescribed” means prescribed by regulation;

  • (5) Section 2 of the Act is amended by adding the following after subsection (1):

    • Meaning of “related”

      (2) For the purpose of this Act, section 4 of the Bankruptcy and Insolvency Act applies for the purpose of determining whether a person is related to a company.

 Subsection 3(1) of the Act is replaced by the following:

Marginal note:Application
  • 3. (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.

 Section 6 of the Act is renumbered as subsection 6(1) and is amended by adding the following:

  • Marginal note:Restriction — certain Crown claims

    (2) Unless Her Majesty agrees otherwise, the court may sanction a compromise or an arrangement only if the compromise or arrangement provides for the payment in full to Her Majesty in right of Canada or a province, within six months after court sanction of the compromise or arrangement, of all amounts that were outstanding at the time of the application for an order under section 11 or 11.02 and that are of a kind that could be subject to a demand under

    • (a) subsection 224(1.2) of the Income Tax Act;

    • (b) any provision of the Canada Pension Plan or of the Employment Insurance Act that refers to subsection 224(1.2) of the Income Tax Act and provides for the collection of a contribution, as defined in the Canada Pension Plan, or an employee’s premium, or employer’s premium, as defined in the Employment Insurance Act, and of any related interest, penalties or other amounts; or

    • (c) any provision of provincial legislation that has a purpose similar to subsection 224(1.2) of the Income Tax Act, or that refers to that subsection, to the extent that it provides for the collection of a sum, and of any related interest, penalties or other amounts, and the sum

      • (i) has been withheld or deducted by a person from a payment to another person and is in respect of a tax similar in nature to the income tax imposed on individuals under the Income Tax Act, or

      • (ii) is of the same nature as a contribution under the Canada Pension Plan if the province is a “province providing a comprehensive pension plan” as defined in subsection 3(1) of the Canada Pension Plan and the provincial legislation establishes a “provincial pension plan” as defined in that subsection.

  • Marginal note:Restriction — default of remittance to Crown

    (3)  If an order contains a provision authorized by section 11.09, no compromise or arrangement shall be sanctioned by the court if, at the time the court hears the application for sanction, Her Majesty in right of Canada or a province satisfies the court that the company is in default on any remittance of an amount referred to in subsection (2) that became due after the time of the application for an order under section 11.02.

  • Marginal note:Restriction — employees, etc.

    (4) The court may sanction a compromise or an arrangement only if

    • (a) the compromise or arrangement provides for payment to the employees and former employees of the company, immediately after the court’s sanction, of

      • (i) amounts at least equal to the amounts that they would have been qualified to receive under paragraph 136(1)(d) of the Bankruptcy and Insolvency Act if the company had become bankrupt on the date of the filing of initial application in respect of the company, and

      • (ii) wages, salaries, commissions or compensation for services rendered after that date and before the court’s sanction of the compromise or arrangement, together with, in the case of travelling salespersons, disbursements properly incurred by them in and about the company’s business during the same period; and

    • (b) the court is satisfied that the company can and will make the payments as required under paragraph (a).

  • Marginal note:Restriction — pensions plan

    (5) If the company participates in a prescribed pension plan for the benefit of its employees, the court may sanction a compromise or an arrangement in respect of the company only if

    • (a) the compromise or arrangement provides for payment, immediately after the court sanction, of the following amounts that are unpaid to the fund established for the purpose of the pension plan:

      • (i) an amount equal to the sum of all amounts that were deducted from the employees’ remuneration for payment to the fund,

      • (ii) if the prescribed pension plan is regulated by an Act of Parliament,

        • (A) an amount equal to the normal cost, within the meaning of subsection 2(1) of the Pension Benefits Standards Regulations, 1985, that was required to be paid by the employer to the fund, and

        • (B) an amount equal to the sum of all amounts that were required to be paid by the employer to the fund under a defined contribution provision, within the meaning of subsection 2(1) of the Pension Benefits Standards Act, 1985; and

      • (iii) in the case of any other prescribed pension plan,

        • (A) an amount equal to the amount that would be the normal cost, within the meaning of subsection 2(1) of the Pension Benefits Standards Regulations, 1985, that the employer would be required to pay to the fund if the prescribed plan were regulated by an Act of Parliament, and

        • (B) an amount equal to the sum of all amounts that would have been required to be paid by the employer to the fund under a defined contribution provision, within the meaning of subsection 2(1) of the Pension Benefits Standards Act, 1985, if the prescribed plan were regulated by an Act of Parliament; and

    • (b) the court is satisfied that the company can and will make the payments as required under paragraph (a).

  • Marginal note:Non-application of subsection (5)

    (6) Despite subsection (5), the court may sanction a compromise or arrangement that does not allow for the payment of the amounts referred to in that subsection if it is satisfied that the relevant parties have entered into an agreement, approved by the relevant pension regulator, respecting the payment of those amounts.

 

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