Trust and Loan Companies Act — T-19.8 510
Superintendent may take control 510 (1) Subject to this Act, where any of the circumstances described in subsection (1.1) exist in respect of a company, the Superintendent may (a) take control, for a period not exceeding sixteen days, of the assets of the company and the assets held in trust by or under the administration of the company; or (b) unless the Minister advises the Superintendent that the Minister is of the opinion that it is not in the public interest to do so, (i) take control, for a period exceeding sixteen days, of the assets of the company and the assets held in trust by or under the administration of the company, (ii) where control of assets has been taken under paragraph (a), continue the control beyond the sixteen days referred to in that paragraph, or (iii) take control of the company. Circumstances for taking control (1.1) Control by the Superintendent under subsection (1) may be taken in respect of a company where (a) the company has failed to pay its liabilities or, in the opinion of the Superintendent, will not be able to pay its liabilities as they become due and payable; (b) [Repealed, 2001, c. 9, s. 565] (c) the assets of the company are not, in the opinion of the Superintendent, sufficient to give adequate protection to the company’s depositors and creditors; (d) any asset appearing on the books or records of the company or held in trust by or under the administration of the company is not, in the opinion of the Superintendent, satisfactorily accounted for; (e) the regulatory capital of the company has, in the opinion of the Superintendent, reached a level or is eroding in a manner that may detrimentally affect the company’s depositors or creditors; (f) the company has failed to comply with an order of the Superintendent under paragraph 473(3)(a); (g) the company’s deposit insurance has been terminated by the Canada Deposit Insurance Corporation; (g.1) in the opinion of the Superintendent, the company’s depositors and creditors may be detrimentally affected because all of the common shares of the company must be disposed of under a direction made by the Minister or because there is a prohibition under this Act in respect of the exercise of the right to vote attached to all of the common shares of the company; (h) in the opinion of the Superintendent, any other state of affairs exists in respect of the company that may be materially prejudicial to the interests of the company’s depositors or creditors or the beneficiaries of any trust under the company’s administration, including where proceedings under a law relating to bankruptcy or insolvency have been commenced in Canada or elsewhere in respect of the holding body corporate of the company; (i) in the opinion of the Superintendent, the continued operation of the company by the directors of the company or by the officers of the company responsible for its management would be materially prejudicial to its integrity or security; or (j) in the opinion of the Superintendent, the continued operation of the company by the directors of the company or by the officers of the company responsible for its management would pose a risk to national security. Minister’s powers (1.11) Subject to this Act, the Minister may, for reasons related to national security, direct the Superintendent to (a) take control, for a period not exceeding 16 days, of the assets of the company and the assets held in trust by or under the administration of the company; (b) take control, for a period exceeding 16 days, of the assets of the company and the assets held in trust by or under the administration of the company; (c) if control of assets has been taken under paragraph (a), continue the control beyond the 16 days referred to in that paragraph; or (d) take control of the company. Notice of proposed action (1.2) The Superintendent must notify a company of any action proposed to be taken in respect of it under paragraph (1)(b) and of its right to make written representations to the