Bankruptcy and Insolvency Act — B-3 50
Who may make a proposal 50 (1) Subject to subsection (1.1), a proposal may be made by (a) an insolvent person; (b) a receiver, within the meaning of subsection 243(2), but only in relation to an insolvent person; (c) a liquidator of an insolvent person’s property; (d) a bankrupt; and (e) a trustee of the estate of a bankrupt. Where proposal may not be made (1.1) A proposal may not be made under this Division with respect to a debtor in respect of whom a consumer proposal has been filed under Division II until the administrator under the consumer proposal has been discharged. To whom proposal made (1.2) A proposal must be made to the creditors generally, either as a mass or separated into classes as provided in the proposal, and may also be made to secured creditors in respect of any class or classes of secured claim, subject to subsection (1.3). Idem (1.3) Where a proposal is made to one or more secured creditors in respect of secured claims of a particular class, the proposal must be made to all secured creditors in respect of secured claims of that class. Classes of secured claims (1.4) Secured claims may be included in the same class if the interests or rights of the creditors holding those claims are sufficiently similar to give them a commonality of interest, taking into account (a) the nature of the debts giving rise to the claims; (b) the nature and rank of the security in respect of the claims; (c) the remedies available to the creditors in the absence of the proposal, and the extent to which the creditors would recover their claims by exercising those remedies; (d) the treatment of the claims under the proposal, and the extent to which the claims would be paid under the proposal; and (e) such further criteria, consistent with those set out in paragraphs (a) to (d), as are prescribed. Court may determine classes (1.5) The court may, on application made at any time after a notice of intention or a proposal is filed, determine, in accordance with subsection (1.4), the classes of secured claims appropriate to a proposal, and the class into which any particular secured claim falls. Creditors’ response (1.6) Subject to section 50.1 as regards included secured creditors, any creditor may respond to the proposal as made to the creditors generally, by filing with the trustee a proof of claim in the manner provided for in (a) sections 124 to 126, in the case of unsecured creditors; or (b) sections 124 to 134, in the case of secured creditors. Effect of filing proof of claim (1.7) Hereinafter in this Division, a reference to an unsecured creditor shall be deemed to include a secured creditor who has filed a proof of claim under subsection (1.6), and a reference to an unsecured claim shall be deemed to include that secured creditor’s claim. Voting (1.8) All questions relating to a proposal, except the question of accepting or refusing the proposal, shall be decided by ordinary resolution of the creditors to whom the proposal was made. Documents to be filed (2) Subject to section 50.4, proceedings for a proposal shall be commenced, in the case of an insolvent person, by filing with a licensed trustee, and in the case of a bankrupt, by filing with the trustee of the estate, (a) a copy of the proposal in writing setting out the terms of the proposal and the particulars of any securities or sureties proposed, signed by the person making the proposal and the proposed sureties if any; and (b) the prescribed statement of affairs. Filing of documents with the official receiver (2.1) Copies of the documents referred to in subsection (2) must, at the time the proposal is filed under subsection 62(1), also be filed by the trustee with the official receiver in the locality of the debtor. Approval of inspectors (3) A proposal made in respect of a bankrupt shall be approved by the inspectors before any further action is taken thereon. Proposal, etc., not to be withdrawn (4) No proposal or any security, guarantee or suretyship tendered with the