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Bankruptcy and Insolvency Act

Version of section 120 from 2004-12-15 to 2009-09-17:

Marginal note:Inspector may not acquire property

  •  (1) No inspector is, directly or indirectly, capable of purchasing or acquiring for himself or for another any of the property of the estate for which he is an inspector, except with the prior approval of the court.

  • Marginal note:Formal defects

    (2) No defect or irregularity in the appointment of an inspector vitiates any act done by him in good faith.

  • Marginal note:Duty of inspectors

    (3) The inspectors shall from time to time verify the bank balance of the estate, examine the trustee’s accounts and inquire into the adequacy of the security filed by the trustee and, subject to subsection (4), shall approve the trustee’s final statement of receipts and disbursements, dividend sheet and disposition of unrealized property.

  • Marginal note:Approval of trustee’s final statement by inspectors

    (4) Before approving the final statement of receipts and disbursements of the trustee, the inspectors shall satisfy themselves that all the property has been accounted for and that the administration of the estate has been completed as far as can reasonably be done and shall determine whether or not the disbursements and expenses incurred are proper and have been duly authorized, and the fees and remuneration just and reasonable in the circumstances.

  • Marginal note:Inspectors' expenses and fees

    (5) Each inspector

    • (a) may be repaid actual and necessary travel expenses incurred in relation to the performance of the inspector’s duties; and

    • (b) may be paid such fees per meeting as are prescribed.

  • Marginal note:Special services

    (6) An inspector duly authorized by the creditors or by the other inspectors to perform special services for the estate may be allowed a special fee for those services, subject to approval of the court, which may vary that fee as it deems proper having regard to the nature of the services rendered in relation to the obligations of the inspector to the estate to act in good faith for the general interests of the administration of the estate.

  • R.S., 1985, c. B-3, s. 120
  • 1992, c. 27, s. 49
  • 2001, c. 4, s. 30
  • 2004, c. 25, s. 65(F)

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