Bankruptcy and Insolvency General Rules (C.R.C., c. 368)

28 Fees payable to a registrar under these Rules belong to Her Majesty in right of the province for which the registrar was appointed.

29 [Repealed, SOR/2005-284, s. 3]

Appeals from Decisions of the Registrar

• 30 (1) An appeal from an order or decision of the registrar must be made by motion to a judge.

• (2) A notice of motion or a motion, as the case may be, must be filed at the office of the registrar and served on the other party within 10 days after the day of the order or decision appealed from, or within such further time as the judge stipulates.

• (3) The notice of motion or the motion must set out the grounds of the appeal.

Appeal to Court of Appeal

• 31 (1) An appeal to a court of appeal referred to in subsection 183(2) of the Act must be made by filing a notice of appeal at the office of the registrar of the court appealed from, within 10 days after the day of the order or decision appealed from, or within such further time as a judge of the court of appeal stipulates.

• (2) If an appeal is brought under paragraph 193(e) of the Act, the notice of appeal must include the application for leave to appeal.

32 The registrar of the court appealed from shall transmit to the court of appeal the notice of appeal and the file.

Official Receiver

33 The official receiver may request instructions from the registrar or, if the official receiver is the registrar, from the judge, in case of doubt respecting any matter arising out of the Act, these Rules or a directive.

Code of Ethics for Trustees

34 Every trustee shall maintain the high standards of ethics that are central to the maintenance of public trust and confidence in the administration of the Act.

35 For the purposes of sections 39 to 52, professional engagement means any bankruptcy or insolvency matter in respect of which a trustee is appointed or designated to act in that capacity pursuant to the Act.

36 Trustees shall perform their duties in a timely manner and carry out their functions with competence, honesty, integrity and due care.

37 Trustees shall cooperate fully with representatives of the Superintendent in all matters arising out of the Act, these Rules or a directive.

38 Trustees shall not assist, advise or encourage any person to engage in any conduct that the trustees know, or ought to know, is illegal or dishonest, in respect of the bankruptcy and insolvency process.

39 Trustees shall be honest and impartial and shall provide to interested parties full and accurate information as required by the Act with respect to the professional engagements of the trustees.

40 Trustees shall not disclose confidential information to the public concerning any professional engagement, unless the disclosure is

• (a) required by law; or

• (b) authorized by the person to whom the confidential information relates.

41 Trustees shall not use any confidential information that is gathered in a professional capacity for their personal benefit or for the benefit of a third party.

42 Trustees shall not purchase, directly or indirectly,

• (a) property of any debtor for whom they are acting with respect to a professional engagement; or

• (b) property of any estates in respect of which the Act applies, for which they are not acting, unless the property is purchased

  • (i) at the same time as it is offered to the public,

  • (ii) at the same price as it is offered to the public, and

  • (iii) during the normal course of business of the bankrupt or debtor.

• 43 (1) Subject to subsection (2), if trustees have a responsibility to sell property in connection with a proposal or bankruptcy, they shall not sell the property, directly or indirectly,

  • (a) to their employees, agents or mandataries, or persons not dealing at arms’ length with the trustees;

  • (b) to other trustees or, knowingly, to employees of other trustees; or

  • (c) to related persons of the trustees or, knowingly, to related persons of the persons referred to in paragraph (a) or (b).

• (2) If trustees have a responsibility to act in accordance with subsection (1), they may sell property in connection with a proposal or bankruptcy to the persons set out in paragraph (1)(a), (b) or (c), if the property is offered for sale

  • (a) at the same time as it is offered to the public;

  • (b) at the same price as it is offered to the public; and

  • (c) during the normal course of business of the bankrupt or debtor.

44 Trustees who are acting with respect to any professional engagement shall avoid any influence, interest or relationship that impairs, or appears in the opinion of an informed person to impair, their professional judgment.

45 Trustees shall not sign any document, including a letter, report, statement, representation or financial statement that they know, or reasonably ought to know, is false or misleading, and shall not associate themselves with such a document in any way, including by adding a disclaimer of responsibility after their signature.

46 Trustees may transmit information that they have not verified, respecting the financial affairs of a bankrupt or debtor, if

• (a) the information is subject to a disclaimer of responsibility or an explanation of the origin of the information; and

• (b) the transmission of the information is not contrary to the Act, these Rules or any directive.

46.1 [Repealed, SOR/98-240, s. 1]

47 Trustees shall not engage in any business or occupation that would compromise their ability to perform any professional engagement or that would jeopardize their integrity, independence or competence.

48 Trustees who hold money or other property in trust shall

• (a) hold the money or property in accordance with the laws, regulations and terms applicable to the trust; and

• (b) administer the money or property with due care, subject to the laws, regulations and terms applicable to the trust.

49 Trustees shall not, directly or indirectly, pay to a third party a commission, compensation or other benefit in order to obtain a professional engagement or accept, directly or indirectly from a third party, a commission, compensation or other benefit for referring work relating to a professional engagement.

50 Trustees shall not obtain, solicit or conduct any engagement that would discredit their profession or jeopardize the integrity of the bankruptcy and insolvency process.

51 Trustees shall not, directly or indirectly, advertise in a manner that

• (a) they know, or should know, is false, misleading, materially incomplete or likely to induce error; or

• (b) unfavourably reflects on the reputation or competence of another trustee or on the integrity of the bankruptcy and insolvency process.

52 Trustees, in the course of their professional engagements, shall apply due care to ensure that the actions carried out by their employees, agents or mandataries or any persons hired by the trustees on a contract basis are carried out in accordance with the same professional standards that those trustees themselves are required to follow in relation to that professional engagement.

53 Any complaint that relates to a contravention of any of sections 36 to 52 must be sent to the Division Office in writing.

Appointment and Substitution of Trustees

54 A certificate of the official receiver, or a certified copy of it, is admissible in any proceeding under the Act as evidence of the appointment or substitution of a trustee, without proof of the authenticity of the signature or of the official character of the signatory.

54.1 to 54.49 [Repealed, SOR/98-240, s. 1]

Duties of Trustees

55 A trustee who is appointed pursuant to subsection 41(11) of the Act shall notify the Division Office of the appointment, in writing, within 10 days after the appointment.

56 A former trustee who is to pass the accounts before the court in accordance with subsection 36(1) of the Act shall make an application to the court and attach to it an affidavit in prescribed form, and shall send a notice in prescribed form, accompanied by a copy of the statement of receipts and disbursements, specifying the time and place set for passing the accounts, to the following persons:

• (a) every creditor whose claim has been proved;

• (b) the registrar;

• (c) the bankrupt;

• (d) the substituted trustee; and

• (e) a representative of the Division Office.

However, the court may order that the notice is not required to be given to the persons referred to in paragraph (a).

57 If a bankrupt who is being examined pursuant to subsection 161(1) of the Act cannot speak fluently in the official language in which the examination is being conducted, the trustee shall arrange for the services, at the examination, of an interpreter approved by the official receiver.

Remuneration of Trustees

• 58 (1) Unless the court orders otherwise, the remuneration of a trustee is deemed to take into account all services performed by the trustee and by the trustee’s partners and employees.

• (2) In taxing the accounts of a trustee pursuant to section 152 of the Act, the taxing officer shall tax disbursements at the rates provided by the tariff.

• (3) A trustee’s disbursements do not include the indirect costs of the trustee’s facilities or premises.

• (4) The expenses incurred by a trustee for the services of an interpreter referred to in section 57 and subsection 108(2) are calculated, at the time of taxation, at a rate that the taxing officer deems reasonable.

• (5) The taxing officer shall determine the disbursements for which the trustee is entitled to be repaid in accordance with this section.

• 58.1 (1) For the purposes of section 156.1 of the Act, the amount required to be paid under the agreement must not be more than $1,800.

• (2) Subject to section 136 of the Act, money from the estate of the bankrupt shall be applied to satisfy the amount to be paid under the agreement.

• (3) The trustee shall provide the Superintendent and the bankrupt with a signed copy of the agreement immediately after it is entered into.

Prescribed Circumstances for Operation of Paragraph 67(1)(B.1) of Act

• 59 (1) A goods and services tax credit payment is not comprised in the property of the bankrupt for the purpose of paragraph 67(1)(b.1) of the Act if a dividend is available to the creditors without taking that payment into account.

• (2) If, in order for a dividend to be available to the creditors, it would be necessary to take into account all or part of a goods and services tax credit payment, the portion of that payment that is not comprised in the property of the bankrupt for the purpose of paragraph 67(1)(b.1) of the Act is the portion, if any, that would have been paid as a dividend to the creditors had all of the payment been comprised in the property of the bankrupt.

• (3) For greater certainty, if no dividend would be available to the creditors even if a goods and services tax credit payment were taken into account, all of that payment is comprised in the property of the bankrupt for the purpose of paragraph 67(1)(b.1) of the Act.

Prescribed Pension Plans for Operation of Subsection 60(1.5) and Sections 81.5 and 81.6 of the Act

59.1 A pension plan regulated by an Act of Parliament or of the legislature of a province is prescribed for the purposes of

• (a) subsection 60(1.5) of the Act; and

• (b) sections 81.5 and 81.6 of the Act.

Prescribed Plan for Operation of Paragraph 67(1)(B.3) of the Act

59.2 A deferred profit sharing plan, as defined in subsection 147(1) of the Income Tax Act, is prescribed for the purpose of paragraph 67(1)(b.3) of the Act.

Taxation of Accounts and Discharge of Trustee

General

60 If, pursuant to subsection 152(4) of the Act, the Superintendent gives a letter of comment to the trustee, the trustee shall, within 30 days after receiving the letter, apply to the taxing officer for a date for a taxation hearing.

• 61 (1) An application of a trustee for discharge must

  • (a) be made in prescribed form; and

  • (b) be accompanied by a copy of the notice of final dividend and application for discharge of trustee, a copy of the final statement of receipts and disbursements as taxed, both in prescribed form, and a dividend sheet.

• (2) At the time of discharge, the trustee must satisfy the court that

  • (a) the statements made in connection with the discharge are true;

  • (b) the final statement of receipts and disbursements is an accurate and correct statement of the administration of the estate, and has been approved by the inspectors and taxed by the court;

  • (c) [Repealed, SOR/2009-218, s. 7]

  • (d) all the property of the bankrupt for which the trustee was accountable has been sold, realized or disposed of in the manner described in the final statement of receipts and disbursements;

  • (e) every claim subject to a dividend was properly examined and that

    • (i) to the best of the trustee’s knowledge, the dividend sheet presented to the court contains a true and correct list of the claims of creditors entitled to share in the estate,

    • (ii) all payments shown on the dividend sheet have been duly made, and

    • (iii) unclaimed dividends and undistributed funds have been forwarded to the Superintendent by the trustee in accordance with subsection 154(1) of the Act;

  • (f) the trustee has not received, does not expect to receive, and has not been promised, any remuneration or consideration other than as shown in the final statement of receipts and disbursements;

  • (g) the trustee has complied with subsection 170(2) of the Act; and

  • (h) the final statement of receipts and disbursements, the dividend sheet and the notice of application for discharge of trustee have been sent to the registrar, the Division Office, the bankrupt and every creditor whose claim has been proved.