Bankruptcy & Insolvency Act Notice
The Bankruptcy and Insolvency Act is a Canadian law detailing the country's policy on commercial and consumer bankruptcy. The act details the powers and responsibilities of the federal Office of the Superintendent of Bankruptcy.
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Bankruptcy Types
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The act`s mandates on bankruptcy apply to all commercial businesses, except loan and trust companies, insurance companies, railways, banks and farmers and fishers, all of whom may voluntarily declare bankruptcy but are not required to. The law also covers individuals in debt near bankruptcy.
Superintendent of Bankruptcy
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The act created the post of superintendent of bankruptcy, who is appointed and can be removed by the governor in council for a term not to exceed five years, although they may serve another term. The superintendent`s main function is to appoint and oversee trustees concerned with each bankruptcy. They may conduct investigations; examine bank accounts, records and documents; and enforce court-ordered repayments from accounts.
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Corporations as Trustees
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In some instances, "a body corporate may hold a license as a trustee only if a majority of its directors and a majority of its officers hold licenses as trustees." However, that business entity must appoint one person to act as a trustee, and they must be licensed.
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