Bankruptcy and Insolvency Act

Version of section 54 from 2009-09-18 to 2009-12-31:


Marginal note:Vote on proposal by creditors

  •  (1) The creditors may, in accordance with this section, resolve to accept or may refuse the proposal as made or as altered at the meeting or any adjournment thereof.

  • Marginal note:Voting system

    (2) For the purpose of subsection (1),

    • (a) the following creditors with proven claims are entitled to vote:

      • (i) all unsecured creditors, and

      • (ii) those secured creditors in respect of whose secured claims the proposal was made;

    • (b) the creditors shall vote by class, according to the class of their respective claims, and for that purpose

      • (i) all unsecured claims constitute one class, unless the proposal provides for more than one class of unsecured claim, and

      • (ii) the classes of secured claims shall be determined as provided by subsection 50(1.4);

    • (c) the votes of the secured creditors do not count for the purpose of this section, but are relevant only for the purpose of subsection 62(2); and

    • (d) the proposal is deemed to be accepted by the creditors if, and only if, all classes of unsecured creditors — other than, unless the court orders otherwise, a class of creditors having equity claims — vote for the acceptance of the proposal by a majority in number and two thirds in value of the unsecured creditors of each class present, personally or by proxy, at the meeting and voting on the resolution.

  • Marginal note:Certain Crown claims

    (2.1) For greater certainty, subsection 224(1.2) of the Income Tax Act shall not be construed as classifying as secured claims, for the purpose of subsection (2), claims of Her Majesty in right of Canada or a province for amounts 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 similar purpose 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, where 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:Where no quorum in a class

    (2.2) Where there is no quorum of secured creditors in respect of a particular class of secured claims, the secured creditors having claims of that class shall be deemed to have voted for the refusal of the proposal.

  • Marginal note:Related creditor

    (3) A creditor who is related to the debtor may vote against but not for the acceptance of the proposal.

  • Marginal note:Voting by trustee

    (4) The trustee, as a creditor, may not vote on the proposal.

  • R.S., 1985, c. B-3, s. 54
  • 1992, c. 27, s. 22
  • 2000, c. 30, s. 143
  • 2007, c. 36, s. 19
Date modified: