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Companies’ Creditors Arrangement Act (R.S.C., 1985, c. C-36)

Act current to 2020-11-17 and last amended on 2019-11-01. Previous Versions

PART IIJurisdiction of Courts (continued)

Marginal note:Disclosure of financial information

  •  (1) A court may, on any application under this Act in respect of a debtor company, by any person interested in the matter and on notice to any interested person who is likely to be affected by an order made under this section, make an order requiring that person to disclose any aspect of their economic interest in respect of a debtor company, on any terms that the court considers appropriate.

  • Marginal note:Factors to be considered

    (2) In deciding whether to make an order, the court is to consider, among other things,

    • (a) whether the monitor approved the proposed disclosure;

    • (b) whether the disclosed information would enhance the prospects of a viable compromise or arrangement being made in respect of the debtor company; and

    • (c) whether any interested person would be materially prejudiced as a result of the disclosure.

  • Marginal note:Meaning of economic interest

    (3) In this section, economic interest includes

    • (a) a claim, an eligible financial contract, an option or a mortgage, hypothec, pledge, charge, lien or any other security interest;

    • (b) the consideration paid for any right or interest, including those referred to in paragraph (a); or

    • (c) any other prescribed right or interest.

  • 2019, c. 29, s. 139

Marginal note:Fixing deadlines

 The court may fix deadlines for the purposes of voting and for the purposes of distributions under a compromise or arrangement.

  • R.S., 1985, c. C-36, s. 12
  • 1992, c. 27, s. 90
  • 1996, c. 6, s. 167
  • 2004, c. 25, s. 195
  • 2005, c. 47, s. 130
  • 2007, c. 36, s. 68

Marginal note:Leave to appeal

 Except in Yukon, any person dissatisfied with an order or a decision made under this Act may appeal from the order or decision on obtaining leave of the judge appealed from or of the court or a judge of the court to which the appeal lies and on such terms as to security and in other respects as the judge or court directs.

  • R.S., 1985, c. C-36, s. 13
  • 2002, c. 7, s. 134

Marginal note:Court of appeal

  •  (1) An appeal under section 13 lies to the highest court of final resort in or for the province in which the proceeding originated.

  • Marginal note:Practice

    (2) All appeals under section 13 shall be regulated as far as possible according to the practice in other cases of the court appealed to, but no appeal shall be entertained unless, within twenty-one days after the rendering of the order or decision being appealed, or within such further time as the court appealed from, or, in Yukon, a judge of the Supreme Court of Canada, allows, the appellant has taken proceedings therein to perfect his or her appeal, and within that time he or she has made a deposit or given sufficient security according to the practice of the court appealed to that he or she will duly prosecute the appeal and pay such costs as may be awarded to the respondent and comply with any terms as to security or otherwise imposed by the judge giving leave to appeal.

  • R.S., 1985, c. C-36, s. 14
  • 2002, c. 7, s. 135

Marginal note:Appeals

  •  (1) An appeal lies to the Supreme Court of Canada on leave therefor being granted by that Court from the highest court of final resort in or for the province or territory in which the proceeding originated.

  • Marginal note:Jurisdiction of Supreme Court of Canada

    (2) The Supreme Court of Canada shall have jurisdiction to hear and to decide according to its ordinary procedure any appeal under subsection (1) and to award costs.

  • Marginal note:Stay of proceedings

    (3) No appeal to the Supreme Court of Canada shall operate as a stay of proceedings unless and to the extent ordered by that Court.

  • Marginal note:Security for costs

    (4) The appellant in an appeal under subsection (1) shall not be required to provide any security for costs, but, unless he provides security for costs in an amount to be fixed by the Supreme Court of Canada, he shall not be awarded costs in the event of his success on the appeal.

  • Marginal note:Decision final

    (5) The decision of the Supreme Court of Canada on any appeal under subsection (1) is final and conclusive.

  • R.S., c. C-25, s. 15
  • R.S., c. 44(1st Supp.), s. 10

Marginal note:Order of court of one province

 Every order made by the court in any province in the exercise of jurisdiction conferred by this Act in respect of any compromise or arrangement shall have full force and effect in all the other provinces and shall be enforced in the court of each of the other provinces in the same manner in all respects as if the order had been made by the court enforcing it.

  • R.S., c. C-25, s. 16

Marginal note:Courts shall aid each other on request

 All courts that have jurisdiction under this Act and the officers of those courts shall act in aid of and be auxiliary to each other in all matters provided for in this Act, and an order of a court seeking aid with a request to another court shall be deemed sufficient to enable the latter court to exercise in regard to the matters directed by the order such jurisdiction as either the court that made the request or the court to which the request is made could exercise in regard to similar matters within their respective jurisdictions.

  • R.S., c. C-25, s. 17

 [Repealed, 2005, c. 47, s. 131]

 [Repealed, 2005, c. 47, s. 131]

 [Repealed, 2005, c. 47, s. 131]

 [Repealed, 2005, c. 47, s. 131]

 [Repealed, 2005, c. 47, s. 131]

 [Repealed, 2005, c. 47, s. 131]

PART IIIGeneral

Duty of Good Faith

Marginal note:Good faith

  •  (1) Any interested person in any proceedings under this Act shall act in good faith with respect to those proceedings.

  • Marginal note:Good faith — powers of court

    (2) If the court is satisfied that an interested person fails to act in good faith, on application by an interested person, the court may make any order that it considers appropriate in the circumstances.

  • 1997, c. 12, s. 125
  • 2005, c. 47, s. 131
  • 2019, c. 29, s. 140

Claims

Marginal note:Claims that may be dealt with by a compromise or arrangement

  •  (1) Subject to subsection (2), the only claims that may be dealt with by a compromise or arrangement in respect of a debtor company are

    • (a) claims that relate to debts or liabilities, present or future, to which the company is subject on the earlier of

      • (i) the day on which proceedings commenced under this Act, and

      • (ii) if the company filed a notice of intention under section 50.4 of the Bankruptcy and Insolvency Act or commenced proceedings under this Act with the consent of inspectors referred to in section 116 of the Bankruptcy and Insolvency Act, the date of the initial bankruptcy event within the meaning of section 2 of that Act; and

    • (b) claims that relate to debts or liabilities, present or future, to which the company may become subject before the compromise or arrangement is sanctioned by reason of any obligation incurred by the company before the earlier of the days referred to in subparagraphs (a)(i) and (ii).

  • Marginal note:Exception

    (2) A compromise or arrangement in respect of a debtor company may not deal with any claim that relates to any of the following debts or liabilities unless the compromise or arrangement explicitly provides for the claim’s compromise and the creditor in relation to that debt has voted for the acceptance of the compromise or arrangement:

    • (a) any fine, penalty, restitution order or other order similar in nature to a fine, penalty or restitution order, imposed by a court in respect of an offence;

    • (b) any award of damages by a court in civil proceedings in respect of

      • (i) bodily harm intentionally inflicted, or sexual assault, or

      • (ii) wrongful death resulting from an act referred to in subparagraph (i);

    • (c) any debt or liability arising out of fraud, embezzlement, misappropriation or defalcation while acting in a fiduciary capacity or, in Quebec, as a trustee or an administrator of the property of others;

    • (d) any debt or liability resulting from obtaining property or services by false pretences or fraudulent misrepresentation, other than a debt or liability of the company that arises from an equity claim; or

    • (e) any debt for interest owed in relation to an amount referred to in any of paragraphs (a) to (d).

  • R.S., 1985, c. C-36, s. 19
  • 1996, c. 6, s. 167
  • 2005, c. 47, s. 131
  • 2007, c. 36, s. 69
 
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