Bankruptcy and Insolvency Act

Marginal note:Where trustee is not qualified to act

• 13.3 (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 solicitor, or a partner or employee of the auditor, accountant or solicitor, 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

    • (ii) related to the trustee under a trust indenture referred to in subparagraph (i).

• 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 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.