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

Regulations are current to 2020-12-28 and last amended on 2011-03-25. Previous Versions

Code of Ethics for Trustees (continued)

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

  • SOR/78-389, s. 2
  • SOR/98-240, s. 1

 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.

  • SOR/98-240, s. 1

 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.

  • SOR/81-646, s. 2
  • SOR/98-240, s. 1

 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.

  • SOR/81-646, s. 3
  • SOR/98-240, s. 1

 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.

  • SOR/98-240, s. 1

 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.

  • SOR/98-240, s. 1
  •  (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.

  • SOR/98-240, s. 1
  • SOR/2007-61, ss. 9(E), 63(E)

 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.

  • SOR/98-240, s. 1

 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.

  • SOR/98-240, s. 1
  • SOR/2005-284, s. 4

 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.

  • SOR/98-240, s. 1

 [Repealed, SOR/98-240, s. 1]

 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.

  • SOR/98-240, s. 1

 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.

  • SOR/98-240, s. 1

 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.

  • SOR/98-240, s. 1

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

  • SOR/98-240, s. 1

 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.

  • SOR/98-240, s. 1

 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.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 10(E)

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

  • SOR/98-240, s. 1

Appointment and Substitution of Trustees

 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.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 11(E)

 [Repealed, SOR/98-240, s. 1]

Duties of Trustees

 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.

  • SOR/98-240, s. 1

 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).

  • SOR/92-579, s. 7
  • SOR/98-240, s. 1

 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.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 63(E)
 
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