GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Companies’ Creditors Arrangement Act — C-36 11.1
Meaning of regulatory body 11.1 (1) In this section, regulatory body means a person or body that has powers, duties or functions relating to the enforcement or administration of an Act of Parliament or of the legislature of a province and includes a person or body that is prescribed to be a regulatory body for the purpose of this Act. Regulatory bodies — order under section 11.02 (2) Subject to subsection (3), no order made under section 11.02 affects a regulatory body’s investigation in respect of the debtor company or an action, suit or proceeding that is taken in respect of the company by or before the regulatory body, other than the enforcement of a payment ordered by the regulatory body or the court. Exception (3) On application by the company and on notice to the regulatory body and to the persons who are likely to be affected by the order, the court may order that subsection (2) not apply in respect of one or more of the actions, suits or proceedings taken by or before the regulatory body if in the court’s opinion (a) a viable compromise or arrangement could not be made in respect of the company if that subsection were to apply; and (b) it is not contrary to the public interest that the regulatory body be affected by the order made under section 11.02. Declaration — enforcement of a payment (4) If there is a dispute as to whether a regulatory body is seeking to enforce its rights as a creditor, the court may, on application by the company and on notice to the regulatory body, make an order declaring both that the regulatory body is seeking to enforce its rights as a creditor and that the enforcement of those rights is stayed. 1997, c. 12, s. 124; 2001, c. 9, s. 576; 2005, c. 47, s. 128; 2007, c. 29, s. 106, c. 36, s. 65
Companies’ Creditors Arrangement Act — C-36 11.2
Interim financing 11.2 (1) On application by a debtor company and on notice to the secured creditors who are likely to be affected by the security or charge, a court may make an order declaring that all or part of the company’s property is subject to a security or charge — in an amount that the court considers appropriate — in favour of a person specified in the order who agrees to lend to the company an amount approved by the court as being required by the company, having regard to its cash-flow statement. The security or charge may not secure an obligation that exists before the order is made. Priority — secured creditors (2) The court may order that the security or charge rank in priority over the claim of any secured creditor of the company. Priority — other orders (3) The court may order that the security or charge rank in priority over any security or charge arising from a previous order made under subsection (1) only with the consent of the person in whose favour the previous order was made. Factors to be considered (4) In deciding whether to make an order, the court is to consider, among other things, (a) the period during which the company is expected to be subject to proceedings under this Act; (b) how the company’s business and financial affairs are to be managed during the proceedings; (c) whether the company’s management has the confidence of its major creditors; (d) whether the loan would enhance the prospects of a viable compromise or arrangement being made in respect of the company; (e) the nature and value of the company’s property; (f) whether any creditor would be materially prejudiced as a result of the security or charge; and (g) the monitor’s report referred to in paragraph 23(1)(b), if any. Additional factor — initial application (5) When an application is made under subsection (1) at the same time as an initial application referred to in subsection 11.02(1) or during the period referred to in an order made under that subsection, no order shall be made under subsection (1) unless the court is also satisfied that the terms of the loan are limited to what is reasonably necessary for the continued operations of the debtor company in the ordinary course of business during that period. 1997, c. 12, s. 124; 2005, c. 47, s. 128; 2007, c. 36, s. 65 2019, c. 29, s. 138
Companies’ Creditors Arrangement Act — C-36 11.3
Assignment of agreements 11.3 (1) On application by a debtor company and on notice to every party to an agreement and the monitor, the court may make an order assigning the rights and obligations of the company under the agreement to any person who is specified by the court and agrees to the assignment. Exceptions (2) Subsection (1) does not apply in respect of rights and obligations that are not assignable by reason of their nature or that arise under (a) an agreement entered into on or after the day on which proceedings commence under this Act; (b) an eligible financial contract; or (c) a collective agreement. Factors to be considered (3) In deciding whether to make the order, the court is to consider, among other things, (a) whether the monitor approved the proposed assignment; (b) whether the person to whom the rights and obligations are to be assigned would be able to perform the obligations; and (c) whether it would be appropriate to assign the rights and obligations to that person. Restriction (4) The court may not make the order unless it is satisfied that all monetary defaults in relation to the agreement — other than those arising by reason only of the company’s insolvency, the commencement of proceedings under this Act or the company’s failure to perform a non-monetary obligation — will be remedied on or before the day fixed by the court. Copy of order (5) The applicant is to send a copy of the order to every party to the agreement. 1997, c. 12, s. 124; 2005, c. 47, s. 128; 2007, c. 29, s. 107, c. 36, ss. 65, 112
Companies’ Creditors Arrangement Act — C-36 11.4
Critical supplier 11.4 (1) On application by a debtor company and on notice to the secured creditors who are likely to be affected by the security or charge, the court may make an order declaring a person to be a critical supplier to the company if the court is satisfied that the person is a supplier of goods or services to the company and that the goods or services that are supplied are critical to the company’s continued operation. Obligation to supply (2) If the court declares a person to be a critical supplier, the court may make an order requiring the person to supply any goods or services specified by the court to the company on any terms and conditions that are consistent with the supply relationship or that the court considers appropriate. Security or charge in favour of critical supplier (3) If the court makes an order under subsection (2), the court shall, in the order, declare that all or part of the property of the company is subject to a security or charge in favour of the person declared to be a critical supplier, in an amount equal to the value of the goods or services supplied under the terms of the order. Priority (4) The court may order that the security or charge rank in priority over the claim of any secured creditor of the company. 1997, c. 12, s. 124; 2000, c. 30, s. 156; 2001, c. 34, s. 33(E); 2005, c. 47, s. 128; 2007, c. 36, s. 65
Companies’ Creditors Arrangement Act — C-36 11.5
Removal of directors 11.5 (1) The court may, on the application of any person interested in the matter, make an order removing from office any director of a debtor company in respect of which an order has been made under this Act if the court is satisfied that the director is unreasonably impairing or is likely to unreasonably impair the possibility of a viable compromise or arrangement being made in respect of the company or is acting or is likely to act inappropriately as a director in the circumstances. Filling vacancy (2) The court may, by order, fill any vacancy created under subsection (1). 1997, c. 12, s. 124; 2005, c. 47, s. 128
Companies’ Creditors Arrangement Act — C-36 11.51
Security or charge relating to director’s indemnification 11.51 (1) On application by a debtor company and on notice to the secured creditors who are likely to be affected by the security or charge, the court may make an order declaring that all or part of the property of the company is subject to a security or charge — in an amount that the court considers appropriate — in favour of any director or officer of the company to indemnify the director or officer against obligations and liabilities that they may incur as a director or officer of the company after the commencement of proceedings under this Act. Priority (2) The court may order that the security or charge rank in priority over the claim of any secured creditor of the company. Restriction — indemnification insurance (3) The court may not make the order if in its opinion the company could obtain adequate indemnification insurance for the director or officer at a reasonable cost. Negligence, misconduct or fault (4) The court shall make an order declaring that the security or charge does not apply in respect of a specific obligation or liability incurred by a director or officer if in its opinion the obligation or liability was incurred as a result of the director’s or officer’s gross negligence or wilful misconduct or, in Quebec, the director’s or officer’s gross or intentional fault. 2005, c. 47, s. 128; 2007, c. 36, s. 66
Companies’ Creditors Arrangement Act — C-36 11.52
Court may order security or charge to cover certain costs 11.52 (1) On notice to the secured creditors who are likely to be affected by the security or charge, the court may make an order declaring that all or part of the property of a debtor company is subject to a security or charge — in an amount that the court considers appropriate — in respect of the fees and expenses of (a) the monitor, including the fees and expenses of any financial, legal or other experts engaged by the monitor in the performance of the monitor’s duties; (b) any financial, legal or other experts engaged by the company for the purpose of proceedings under this Act; and (c) any financial, legal or other experts engaged by any other interested person if the court is satisfied that the security or charge is necessary for their effective participation in proceedings under this Act. Priority (2) The court may order that the security or charge rank in priority over the claim of any secured creditor of the company. 2005, c. 47, s. 128; 2007, c. 36, s. 66
Companies’ Creditors Arrangement Act — C-36 11.6
Bankruptcy and Insolvency Act matters 11.6 Notwithstanding the Bankruptcy and Insolvency Act , (a) proceedings commenced under Part III of the Bankruptcy and Insolvency Act may be taken up and continued under this Act only if a proposal within the meaning of the Bankruptcy and Insolvency Act has not been filed under that Part; and (b) an application under this Act by a bankrupt may only be made with the consent of inspectors referred to in section 116 of the Bankruptcy and Insolvency Act but no application may be made under this Act by a bankrupt whose bankruptcy has resulted from (i) the operation of subsection 50.4(8) of the Bankruptcy and Insolvency Act , or (ii) the refusal or deemed refusal by the creditors or the court, or the annulment, of a proposal under the Bankruptcy and Insolvency Act . 1997, c. 12, s. 124
Companies’ Creditors Arrangement Act — C-36 11.7
Court to appoint monitor 11.7 (1) When an order is made on the initial application in respect of a debtor company, the court shall at the same time appoint a person to monitor the business and financial affairs of the company. The person so appointed must be a trustee, within the meaning of subsection 2(1) of the Bankruptcy and Insolvency Act . Restrictions on who may be monitor (2) Except with the permission of the court and on any conditions that the court may impose, no trustee may be appointed as monitor in relation to a company (a) if the trustee is or, at any time during the two preceding years, was (i) a director, an officer or an employee of the company, (ii) related to the company or to any director or officer of the company, or (iii) the auditor, accountant or legal counsel, or a partner or an employee of the auditor, accountant or legal counsel, of the company; or (b) if the trustee is (i) the trustee under a trust indenture issued by the company or any person related to the company, or the holder of a power of attorney under an act constituting a hypothec within the meaning of the Civil Code of Quebec that is granted by the company or any person related to the company, or (ii) related to the trustee, or the holder of a power of attorney, referred to in subparagraph (i). Court may replace monitor (3) On application by a creditor of the company, the court may, if it considers it appropriate in the circumstances, replace the monitor by appointing another trustee, within the meaning of subsection 2(1) of the Bankruptcy and Insolvency Act , to monitor the business and financial affairs of the company. 1997, c. 12, s. 124; 2005, c. 47, s. 129
Companies’ Creditors Arrangement Act — C-36 11.8
damage shall not rank as costs of administration. Priority of claims (8) Any claim by Her Majesty in right of Canada or a province against a debtor company in respect of which proceedings have been commenced under this Act for costs of remedying any environmental condition or environmental damage affecting real property of the company is secured by a charge on the real property and on any other real property of the company that is contiguous thereto and that is related to the activity that caused the environmental condition or environmental damage, and the charge (a) is enforceable in accordance with the law of the jurisdiction in which the real property is located, in the same way as a mortgage, hypothec or other security on real property; and (b) ranks above any other claim, right or charge against the property, notwithstanding any other provision of this Act or anything in any other federal or provincial law. Claim for clean-up costs (9) A claim against a debtor company for costs of remedying any environmental condition or environmental damage affecting real property of the company shall be a claim under this Act, whether the condition arose or the damage occurred before or after the date on which proceedings under this Act were commenced. 1997, c. 12, s. 124; 2007, c. 36, s. 67
Companies’ Creditors Arrangement Act — C-36 11.9
Disclosure of financial information 11.9 (1) A court may, on any application under this Act in respect of a debtor company, by any person interested in the matter and on notice to any interested person who is likely to be affected by an order made under this section, make an order requiring that person to disclose any aspect of their economic interest in respect of a debtor company, on any terms that the court considers appropriate. Factors to be considered (2) In deciding whether to make an order, the court is to consider, among other things, (a) whether the monitor approved the proposed disclosure; (b) whether the disclosed information would enhance the prospects of a viable compromise or arrangement being made in respect of the debtor company; and (c) whether any interested person would be materially prejudiced as a result of the disclosure. Meaning of economic interest (3) In this section, economic interest includes (a) a claim, an eligible financial contract, an option or a mortgage, hypothec, pledge, charge, lien or any other security interest; (b) the consideration paid for any right or interest, including those referred to in paragraph (a); or (c) any other prescribed right or interest. 2019, c. 29, s. 139
Companies’ Creditors Arrangement Act — C-36 12
Fixing deadlines 12 The court may fix deadlines for the purposes of voting and for the purposes of distributions under a compromise or arrangement. R.S., 1985, c. C-36, s. 12; 1992, c. 27, s. 90; 1996, c. 6, s. 167; 2004, c. 25, s. 195; 2005, c. 47, s. 130; 2007, c. 36, s. 68
Companies’ Creditors Arrangement Act — C-36 13
Leave to appeal 13 Except in Yukon, any person dissatisfied with an order or a decision made under this Act may appeal from the order or decision on obtaining leave of the judge appealed from or of the court or a judge of the court to which the appeal lies and on such terms as to security and in other respects as the judge or court directs. R.S., 1985, c. C-36, s. 13; 2002, c. 7, s. 134
Companies’ Creditors Arrangement Act — C-36 14
Court of appeal 14 (1) An appeal under section 13 lies to the highest court of final resort in or for the province in which the proceeding originated. Practice (2) All appeals under section 13 shall be regulated as far as possible according to the practice in other cases of the court appealed to, but no appeal shall be entertained unless, within twenty-one days after the rendering of the order or decision being appealed, or within such further time as the court appealed from, or, in Yukon, a judge of the Supreme Court of Canada, allows, the appellant has taken proceedings therein to perfect his or her appeal, and within that time he or she has made a deposit or given sufficient security according to the practice of the court appealed to that he or she will duly prosecute the appeal and pay such costs as may be awarded to the respondent and comply with any terms as to security or otherwise imposed by the judge giving leave to appeal. R.S., 1985, c. C-36, s. 14; 2002, c. 7, s. 135
Companies’ Creditors Arrangement Act — C-36 15
Appeals 15 (1) An appeal lies to the Supreme Court of Canada on leave therefor being granted by that Court from the highest court of final resort in or for the province or territory in which the proceeding originated. Jurisdiction of Supreme Court of Canada (2) The Supreme Court of Canada shall have jurisdiction to hear and to decide according to its ordinary procedure any appeal under subsection (1) and to award costs. Stay of proceedings (3) No appeal to the Supreme Court of Canada shall operate as a stay of proceedings unless and to the extent ordered by that Court. Security for costs (4) The appellant in an appeal under subsection (1) shall not be required to provide any security for costs, but, unless he provides security for costs in an amount to be fixed by the Supreme Court of Canada, he shall not be awarded costs in the event of his success on the appeal. Decision final (5) The decision of the Supreme Court of Canada on any appeal under subsection (1) is final and conclusive. R.S., c. C-25, s. 15; R.S., c. 44(1st Supp.), s. 10
Companies’ Creditors Arrangement Act — C-36 16
Order of court of one province 16 Every order made by the court in any province in the exercise of jurisdiction conferred by this Act in respect of any compromise or arrangement shall have full force and effect in all the other provinces and shall be enforced in the court of each of the other provinces in the same manner in all respects as if the order had been made by the court enforcing it. R.S., c. C-25, s. 16
Companies’ Creditors Arrangement Act — C-36 17
Courts shall aid each other on request 17 All courts that have jurisdiction under this Act and the officers of those courts shall act in aid of and be auxiliary to each other in all matters provided for in this Act, and an order of a court seeking aid with a request to another court shall be deemed sufficient to enable the latter court to exercise in regard to the matters directed by the order such jurisdiction as either the court that made the request or the court to which the request is made could exercise in regard to similar matters within their respective jurisdictions. R.S., c. C-25, s. 17
Companies’ Creditors Arrangement Act — C-36 18.6
Good faith 18.6 (1) Any interested person in any proceedings under this Act shall act in good faith with respect to those proceedings. Good faith — powers of court (2) If the court is satisfied that an interested person fails to act in good faith, on application by an interested person, the court may make any order that it considers appropriate in the circumstances. 1997, c. 12, s. 125; 2005, c. 47, s. 131 2019, c. 29, s. 140
Companies’ Creditors Arrangement Act — C-36 19
Claims that may be dealt with by a compromise or arrangement 19 (1) Subject to subsection (2), the only claims that may be dealt with by a compromise or arrangement in respect of a debtor company are (a) claims that relate to debts or liabilities, present or future, to which the company is subject on the earlier of (i) the day on which proceedings commenced under this Act, and (ii) if the company filed a notice of intention under section 50.4 of the Bankruptcy and Insolvency Act or commenced proceedings under this Act with the consent of inspectors referred to in section 116 of the Bankruptcy and Insolvency Act , the date of the initial bankruptcy event within the meaning of section 2 of that Act; and (b) claims that relate to debts or liabilities, present or future, to which the company may become subject before the compromise or arrangement is sanctioned by reason of any obligation incurred by the company before the earlier of the days referred to in subparagraphs (a)(i) and (ii). Exception (2) A compromise or arrangement in respect of a debtor company may not deal with any claim that relates to any of the following debts or liabilities unless the compromise or arrangement explicitly provides for the claim’s compromise and the creditor in relation to that debt has voted for the acceptance of the compromise or arrangement: (a) any fine, penalty, restitution order or other order similar in nature to a fine, penalty or restitution order, imposed by a court in respect of an offence; (b) any award of damages by a court in civil proceedings in respect of (i) bodily harm intentionally inflicted, or sexual assault, or (ii) wrongful death resulting from an act referred to in subparagraph (i); (c) any debt or liability arising out of fraud, embezzlement, misappropriation or defalcation while acting in a fiduciary capacity or, in Quebec, as a trustee or an administrator of the property of others; (d) any debt or liability resulting from obtaining property or services by false pretences or fraudulent misrepresentation, other than a debt or liability of the company that arises from an equity claim; or (e) any debt for interest owed in relation to an amount referred to in any of paragraphs (a) to (d). R.S., 1985, c. C-36, s. 19; 1996, c. 6, s. 167; 2005, c. 47, s. 131; 2007, c. 36, s. 69