PART IVProperty of the Bankrupt (continued)
Preferences and Transfers at Undervalue (continued)
101.2 [Repealed, 2007, c. 36, s. 44]
PART VAdministration of Estates
Meetings of Creditors
Marginal note:First meeting of creditors
102 (1) Subject to subsection (1.1), it is the duty of the trustee to inquire as to the names and addresses of the creditors of a bankrupt and, within five days after the date of the trustee’s appointment, to send in the prescribed manner to the bankrupt, to every known creditor and to the Superintendent a notice in the prescribed form of the bankruptcy and of the first meeting of creditors, to be held within the twenty-one day period following the day of the trustee’s appointment, at the office of the official receiver in the locality of the bankrupt, but the official receiver may, when the official receiver deems it expedient, authorize the meeting to be held at the office of any other official receiver or at such other place as the official receiver may fix.
Marginal note:Extension of days
(1.1) The official receiver in the locality of the bankrupt may extend the period during which the first meeting of creditors must be held
(a) by ten days, or
(b) where the official receiver is satisfied that special circumstances exist, by up to thirty days,
where the official receiver is satisfied that the extension will not be detrimental to the creditors and is in the general interests of the administration of the estate.
Marginal note:Documents to accompany notice
(2) The trustee shall include with the notice referred to in subsection (1) a list of the creditors with claims amounting to twenty-five dollars or more and the amounts of their claims together with a proof of claim and proxy in the prescribed form but no name shall be inserted in the proxy before it is so sent.
Marginal note:Information and notice
(3) In the case of the bankruptcy of an individual, the trustee shall set out in the notice, in the prescribed form, information concerning the financial situation of the bankrupt and the obligation of the bankrupt, if any, to make payments required under section 68 to the estate of the bankrupt.
Marginal note:Publication in local paper by trustee
(4) A notice in the prescribed form shall, as soon as possible after the bankruptcy and not later than five days before the first meeting of creditors, be published in a local newspaper by the trustee.
Marginal note:Purpose of meeting
(5) The purpose of the first meeting of creditors shall be to consider the affairs of the bankrupt, to affirm the appointment of the trustee or substitute another in place thereof, to appoint inspectors and to give such directions to the trustee as the creditors may see fit with reference to the administration of the estate.
- R.S., 1985, c. B-3, s. 102
- 1992, c. 1, s. 20, c. 27, s. 43
- 1997, c. 12, s. 84
- 2005, c. 47, s. 77
Marginal note:Meetings during administration
103 (1) The trustee may at any time call a meeting of creditors and he shall do so when directed by the court and whenever requested in writing by a majority of the inspectors or by twenty-five per cent in number of the creditors holding twenty-five per cent in value of the proved claims.
Marginal note:Meetings convened by inspectors
(2) A meeting of the creditors may be convened by a majority of the inspectors at any time when a trustee is not available to call a meeting or has neglected or failed to do so when so directed by the inspectors.
- R.S., c. B-3, s. 81
Marginal note:Notice of subsequent meetings
104 (1) Meetings of creditors other than the first shall be called by sending a notice of the time and place of the meeting together with an agenda outlining the items for discussion with a reasonable explanation of what is expected to be discussed for each item, not less than five days before the time of each meeting to each creditor at the address given in the creditor’s proof of claim.
Marginal note:Notice to creditors with proved claims
(2) After the first meeting of creditors, notice of any meeting or of any proceeding need not be given to any creditors other than those who have proved their claims.
- R.S., 1985, c. B-3, s. 104
- 1997, c. 12, s. 85
- 2005, c. 47, s. 78
Procedure at Meetings
Marginal note:Chair of first meeting
105 (1) The official receiver or his nominee shall be the chair at the first meeting of creditors and shall decide any questions or disputes arising at the meeting and from any such decision any creditor may appeal to the court.
Marginal note:Chair of subsequent meetings
(2) At all meetings of creditors other than the first, the trustee shall be the chair unless by resolution at the meeting some other person is appointed.
Marginal note:Casting vote
(3) The chair of any meeting of creditors shall, in the case of a tie, have a second or casting vote.
Marginal note:Minutes of meeting
(4) The chair of any meeting of creditors shall, within a reasonable time after each meeting, cause minutes of the proceedings at the meeting to be prepared. The minutes shall be signed by the chair or by the chair of the next meeting and shall be retained as part of the books, records and documents referred to in section 26 relating to the administration of the estate.
Marginal note:Non-receipt of notice by creditor
(5) Where a meeting of creditors is called, the proceedings had and resolutions passed at the meeting, unless the court otherwise orders, are valid, notwithstanding that some creditors had not received notice.
- R.S., 1985, c. B-3, s. 105
- 2005, c. 47, ss. 79, 123(E)
106 (1) One creditor entitled to vote, or the representative of such a creditor, constitutes a quorum for a meeting of creditors.
Marginal note:Where no quorum
(2) Where there is no quorum at the first meeting of creditors,
(a) the appointment of the trustee shall be deemed to be confirmed; and
(b) the chair shall adjourn the meeting
(i) to such time and place as the chair fixes, or
(ii) without fixing a time or place for a future meeting.
(2.1) Where there is no quorum at any meeting of creditors other than the first meeting, the chair shall adjourn the meeting to such time and place as the chair fixes.
Marginal note:Adjournment with consent of meeting
(3) The chair of any meeting of creditors may with the consent of the meeting adjourn the meeting from time to time.
- R.S., 1985, c. B-3, s. 106
- 1992, c. 27, s. 44
- 2005, c. 47, s. 123(E)
Marginal note:How creditors shall vote
107 Every class of creditors may express its views and wishes separately from every other class and the effect to be given to those views and wishes shall, in case of any dispute and subject to this Act, be in the discretion of the court.
- R.S., c. B-3, s. 85
Marginal note:Chair may admit or reject proof
108 (1) The chair of any meeting of creditors has power to admit or reject a proof of claim for the purpose of voting but his decision is subject to appeal to the court.
Marginal note:Accept as proof
(2) Notwithstanding anything in this Act, the chair may, for the purpose of voting, accept any letter or printed matter transmitted by any form or mode of telecommunication as proof of the claim of a creditor.
Marginal note:In case of doubt
(3) Where the chair is in doubt as to whether a proof of claim should be admitted or rejected, he shall mark the proof as objected to and allow the creditor to vote subject to the vote being declared invalid in the event of the objection being sustained.
- R.S., 1985, c. B-3, s. 108
- 1992, c. 27, s. 45
- 2005, c. 47, s. 123(E)
Marginal note:Right of creditor to vote
109 (1) A person is not entitled to vote as a creditor at any meeting of creditors unless the person has duly proved a claim provable in bankruptcy and the proof of claim has been duly filed with the trustee before the time appointed for the meeting.
Marginal note:Voting by proxy
(2) A creditor may vote either in person or by proxy.
Marginal note:Form of proxy
(3) A proxy is not invalid merely because it is in the form of a letter or printed matter transmitted by any form or mode of telecommunication.
Marginal note:Debtor may not be proxyholder
(4) A debtor may not be appointed a proxyholder to vote at any meeting of the debtor’s creditors.
(5) A corporation may vote by an authorized proxyholder at meetings of creditors.
Marginal note:Vote of creditors not dealing at arm’s length
(6) If the chair is of the opinion that the outcome of a vote was determined by the vote of a creditor who did not deal with the debtor at arm’s length at any time during the period that begins on the day that is one year before the date of the initial bankruptcy event and that ends on the date of the bankruptcy, the chair shall redetermine the outcome by excluding the creditor’s vote. The redetermined outcome is the outcome of the vote unless a court, on application within 10 days after the day on which the chair redetermined the outcome of the vote, considers it appropriate to include the creditor’s vote and determines another outcome.
(7) [Repealed, 2005, c. 47, s. 80]
- R.S., 1985, c. B-3, s. 109
- 1992, c. 27, s. 46
- 1997, c. 12, s. 86
- 1999, c. 31, s. 24(F)
- 2004, c. 25, s. 63
- 2005, c. 47, s. 80
- 2007, c. 36, s. 45
Marginal note:Claims acquired after date of bankruptcy
110 (1) No person is entitled to vote on a claim acquired after the date of bankruptcy in respect of a debtor unless the entire claim is acquired.
(2) Subsection (1) does not apply to persons acquiring notes, bills or other securities on which they are liable.
- R.S., 1985, c. B-3, s. 110
- 2005, c. 47, s. 81
Marginal note:Creditor secured by bill or note
111 A creditor shall not vote in respect of any claim on or secured by a current bill of exchange or promissory note held by him, unless he is willing to treat the liability to him thereon of every person who is liable thereon antecedently to the debtor, and who is not a bankrupt, as a security in his hands and to estimate the value thereof and for the purposes of voting, but not for the purposes of dividend, to deduct it from his claim.
- R.S., c. B-3, s. 89
Marginal note:Voting by secured creditor
112 For the purpose of voting, a secured creditor shall, unless he surrenders his security, state in his proof the particulars of his security, the date when it was given and the value at which he assesses it, and he is entitled to vote only in respect of the balance, if any, due to him, after deducting the value of his security.
- R.S., c. B-3, s. 90
Marginal note:Trustee may vote
113 (1) If the trustee is a proxyholder for a creditor, the trustee may vote as a creditor at any meeting of creditors.
Marginal note:Trustee’s vote not to count in respect of certain resolutions
(2) The vote of the trustee — or of the partner, clerk or legal counsel of the trustee, or of the clerk of the legal counsel of the trustee — as proxyholder for a creditor, shall not be counted in respect of any resolution affecting the remuneration or conduct of the trustee.
Marginal note:Persons not entitled to vote
(3) The following persons are not entitled to vote on the appointment of a trustee — and except with the permission of the court and on any condition that the court may impose, the following persons are not entitled to vote on the appointment of inspectors:
(a) the father, mother, child, sister, brother, uncle or aunt, by blood, adoption, marriage or common-law partnership, or the spouse or common-law partner, of the bankrupt;
(b) where the bankrupt is a corporation, any officer, director or employee thereof; and
(c) where the bankrupt is a corporation, any wholly owned subsidiary corporation or any officer, director or employee thereof.
- R.S., 1985, c. B-3, s. 113
- R.S., 1985, c. 31 (1st Supp.), s. 73
- 2000, c. 12, s. 13
- 2004, c. 25, s. 64
- 2005, c. 47, s. 82
Marginal note:Evidence of proceedings at meetings of creditors
114 (1) A minute of proceedings at a meeting of creditors under this Act signed at the same or the next ensuing meeting by a person describing himself as or appearing to be chair of the meeting at which the minute is signed shall be admitted in evidence without further proof.
Marginal note:Evidence of regularity
(2) Until the contrary is proved, every meeting of creditors in respect of the proceedings whereof a minute has been signed by the chair shall be deemed to have been duly convened and held and all resolutions passed or proceedings thereat to have been duly convened and held and to have been duly passed or had.
- R.S., 1985, c. B-3, s. 114
- 2005, c. 47, s. 123(E)
115 Subject to this Act, all questions at meetings of creditors shall be decided by resolution carried by the majority of votes, and for that purpose the votes of a creditor shall be calculated by counting one vote for each dollar of every claim of the creditor that is not disallowed.
- R.S., 1985, c. B-3, s. 115
- 1992, c. 27, s. 47
Marginal note:Court order — interlocutory or permanent
115.1 In an application to revoke or vary a decision that affects or could affect the outcome of a vote, the court may make any order that it considers appropriate, including one that suspends the effect of the vote until the application is determined and one that redetermines the outcome of the vote.
- 2007, c. 36, s. 46
Marginal note:Resolution respecting inspectors
116 (1) At the first or a subsequent meeting of creditors, the creditors shall, by resolution, appoint up to five inspectors of the estate of the bankrupt or agree not to appoint any inspectors.
Marginal note:Persons not eligible
(2) No person is eligible to be appointed or to act as an inspector who is a party to any contested action or proceedings by or against the estate of the bankrupt.
(3) The powers of the inspectors may be exercised by a majority of them.
Marginal note:Filling vacancy
(4) The creditors or inspectors at any meeting may fill any vacancy on the board of inspectors.
Marginal note:Revocation and replacement
(5) The creditors may at any meeting and the court may on the application of the trustee or any creditor revoke the appointment of any inspector and appoint another in his stead.
- R.S., 1985, c. B-3, s. 116
- 2005, c. 47, s. 83
- Date modified: