GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Bankruptcy and Insolvency Act — B-3 109
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. Voting by proxy (2) A creditor may vote either in person or by proxy. 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. Debtor may not be proxyholder (4) A debtor may not be appointed a proxyholder to vote at any meeting of the debtor’s creditors. Corporation (5) A corporation may vote by an authorized proxyholder at meetings of creditors. 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 (7) [Repealed, 2005, c. 47, s. 80] R.S., 1985, c. B-3, s. 109; 1992, c. 27, s. 46; 1997, c. 12, s. 86; 1999, c. 31, s. 24(F); 2004, c. 25, s. 63; 2005, c. 47, s. 80; 2007,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
Bankruptcy and Insolvency Act — B-3 110
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. Exception (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
Bankruptcy and Insolvency Act — B-3 111
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
Bankruptcy and Insolvency Act — B-3 112
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
Bankruptcy and Insolvency Act — B-3 113
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. 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. 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
Bankruptcy and Insolvency Act — B-3 114
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. 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)
Bankruptcy and Insolvency Act — B-3 115
Votes 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
Bankruptcy and Insolvency Act — B-3 115.1
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
Bankruptcy and Insolvency Act — B-3 116
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. 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. Powers (3) The powers of the inspectors may be exercised by a majority of them. Filling vacancy (4) The creditors or inspectors at any meeting may fill any vacancy on the board of inspectors. 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
Bankruptcy and Insolvency Act — B-3 117
Meetings 117 (1) The trustee may call a meeting of inspectors when he deems it advisable and he shall do so when requested in writing by a majority of the inspectors. Participation by telephone, etc. (1.1) An inspector may, if all the other inspectors consent, participate in a meeting of inspectors by means of such telephone or other communication facilities as permit all persons participating in the meeting to communicate with each other, and an inspector participating in such a meeting by such means is deemed for the purpose of this Act to be present at that meeting. Trustee votes in case of tie (2) In the event of an equal division of opinion at a meeting of inspectors, the opinion of any absent inspector shall be sought in order to resolve the difference, and in the case of a difference that cannot be so resolved, it shall be resolved by the trustee, unless it concerns his personal conduct or interest in which case it shall be resolved by the creditors or the court. R.S., 1985, c. B-3, s. 117; 1992, c. 27, s. 48
Bankruptcy and Insolvency Act — B-3 118
Obligation of trustee when inspectors fail to exercise their powers 118 If the inspectors fail to exercise the powers conferred on them, the trustee shall call a meeting of the creditors for the purpose of substituting other inspectors and for the purpose of taking any action or giving any directions that may be necessary. R.S., 1985, c. B-3, s. 118; 2005, c. 47, s. 84
Bankruptcy and Insolvency Act — B-3 119
Creditors may override directions of inspectors 119 (1) Subject to this Act, the trustee shall in the administration of the property of the bankrupt and in the distribution thereof among his creditors have regard to any directions that may be given by resolution of the creditors at any general meeting or by the inspectors, and any directions so given by the creditors shall in case of conflict be deemed to override any directions given by the inspectors. Decisions of inspectors subject to review by court (2) The decisions and actions of the inspectors are subject to review by the court at the instance of the trustee or any interested person and the court may revoke or vary any act or decision of the inspectors and it may give such directions, permission or authority as it deems proper in substitution thereof or may refer any matter back to the inspectors for reconsideration. R.S., c. B-3, s. 94
Bankruptcy and Insolvency Act — B-3 120
Inspector may not acquire property 120 (1) No inspector is, directly or indirectly, capable of purchasing or acquiring for himself or for another any of the property of the estate for which he is an inspector, except with the prior approval of the court. Formal defects (2) No defect or irregularity in the appointment of an inspector vitiates any act done by him in good faith. Duty of inspectors (3) In addition to the other duties that are attributed to them under this Act, the inspectors shall from time to time verify the bank balance of the estate, examine the trustee’s accounts and inquire into the adequacy of the security filed by the trustee and, subject to subsection (4), shall approve the trustee’s final statement of receipts and disbursements, dividend sheet and disposition of unrealized property. Approval of trustee’s final statement by inspectors (4) Before approving the final statement of receipts and disbursements of the trustee, the inspectors shall satisfy themselves that all the property has been accounted for and that the administration of the estate has been completed as far as can reasonably be done and shall determine whether or not the disbursements and expenses incurred are proper and have been duly authorized, and the fees and remuneration just and reasonable in the circumstances. inspector’s expenses and fees (5) Each inspector (a) may be repaid actual and necessary travel expenses incurred in relation to the performance of the inspector’s duties; and (b) may be paid such fees per meeting as are prescribed. Special services (6) An inspector duly authorized by the creditors or by the other inspectors to perform special services for the estate may be allowed a special fee for those services, subject to approval of the court, which may vary that fee as it deems proper having regard to the nature of the services rendered in relation to the obligations of the inspector to the estate to act in good faith for the general interests of the administration of the estate. R.S., 1985, c. B-3, s. 120; 1992, c. 27, s. 49; 2001, c. 4, s. 30; 2004, c. 25, s. 65(F); 2005, c. 47, s. 85
Bankruptcy and Insolvency Act — B-3 121
Claims provable 121 (1) All debts and liabilities, present or future, to which the bankrupt is subject on the day on which the bankrupt becomes bankrupt or to which the bankrupt may become subject before the bankrupt’s discharge by reason of any obligation incurred before the day on which the bankrupt becomes bankrupt shall be deemed to be claims provable in proceedings under this Act. Contingent and unliquidated claims (2) The determination whether a contingent or unliquidated claim is a provable claim and the valuation of such a claim shall be made in accordance with section 135. Debts payable at a future time (3) A creditor may prove a debt not payable at the date of the bankruptcy and may receive dividends equally with the other creditors, deducting only thereout a rebate of interest at the rate of five per cent per annum computed from the declaration of a dividend to the time when the debt would have become payable according to the terms on which it was contracted. Family support claims (4) A claim in respect of a debt or liability referred to in paragraph 178(1)(b) or (c) payable under an order or agreement made before the date of the initial bankruptcy event in respect of the bankrupt and at a time when the spouse, former spouse, former common-law partner or child was living apart from the bankrupt, whether the order or agreement provides for periodic amounts or lump sum amounts, is a claim provable under this Act. R.S., 1985, c. B-3, s. 121; 1992, c. 27, s. 50; 1997, c. 12, s. 87; 2000, c. 12, s. 14
Bankruptcy and Insolvency Act — B-3 122
Claims provable in bankruptcy following proposal 122 (1) The claims of creditors under a proposal are, in the event of the debtor subsequently becoming bankrupt, provable in the bankruptcy for the full amount of the claims less any dividends paid thereon pursuant to the proposal. Interest (2) If interest on any debt or sum certain is provable under this Act but the rate of interest has not been agreed on, the creditor may prove interest at a rate not exceeding five per cent per annum to the date of the bankruptcy from the time the debt or sum was payable, if evidenced by a written document, or, if not so evidenced, from the time notice has been given the debtor of the interest claimed. R.S., 1985, c. B-3, s. 122; 2004, c. 25, s. 66(E)
Bankruptcy and Insolvency Act — B-3 123
Proof in respect of distinct contracts 123 Where a bankrupt was, at the date of the bankruptcy, liable in respect of distinct contracts as a member of two or more distinct firms, or as a sole contractor and also as member of a firm, the circumstance that the firms are in whole or in part composed of the same individuals, or that the sole contractor is also one of the joint contractors, shall not prevent proof, in respect of the contracts, against the properties respectively liable on the contracts. R.S., c. B-3, s. 96
Bankruptcy and Insolvency Act — B-3 124
Creditors shall prove claims 124 (1) Every creditor shall prove his claim, and a creditor who does not prove his claim is not entitled to share in any distribution that may be made. Proof by delivery (2) A claim shall be proved by delivering to the trustee a proof of claim in the prescribed form. Who may make proof of claims (3) The proof of claim may be made by the creditor himself or by a person authorized by him on behalf of the creditor, and, if made by a person so authorized, it shall state his authority and means of knowledge. Shall refer to account (4) The proof of claim shall contain or refer to a statement of account showing the particulars of the claim and any counter-claim that the bankrupt may have to the knowledge of the creditor and shall specify the vouchers or other evidence, if any, by which it can be substantiated. (5) [Repealed, 2005, c. 47, s. 86] R.S., 1985, c. B-3, s. 124; 2005, c. 47, s. 86
Bankruptcy and Insolvency Act — B-3 125
Penalty for filing false claim 125 Where a creditor or other person in any proceedings under this Act files with the trustee a proof of claim containing any wilfully false statement or wilful misrepresentation, the court may, in addition to any other penalty provided in this Act, disallow the claim in whole or in part as the court in its discretion may see fit. R.S., c. B-3, s. 97
Bankruptcy and Insolvency Act — B-3 126
Who may examine proofs 126 (1) Every creditor who has filed a proof of claim is entitled to see and examine the proofs of other creditors. Worker’s wage claims (2) Proofs of claims for wages of workers and others employed by the bankrupt may be made in one proof by the bankrupt, by someone on the bankrupt’s behalf, by a representative of a federal or provincial ministry responsible for labour matters, by a representative of a union representing workers and others employed by the bankrupt or by a court-appointed representative, and that proof is to be made by attaching to it a schedule setting out the names and addresses of the workers and others and the amounts severally due to them, but that proof does not disentitle any worker or other wage earner to file a separate proof on his or her own behalf. R.S., 1985, c. B-3, s. 126; 1997, c. 12, s. 88; 2005, c. 47, s. 87
Bankruptcy and Insolvency Act — B-3 127
Proof by secured creditor 127 (1) Where a secured creditor realizes his security, he may prove the balance due to him after deducting the net amount realized. May prove whole claim on surrender (2) Where a secured creditor surrenders his security to the trustee for the general benefit of the creditors, he may prove his whole claim. R.S., 1985, c. B-3, s. 127; 2004, c. 25, s. 67(F)
Bankruptcy and Insolvency Act — B-3 128
Proof may be requested 128 (1) Where the trustee has knowledge of property that may be subject to a security, the trustee may, by serving notice in the prescribed form and manner, require any person to file, in the prescribed form and manner, a proof of the security that gives full particulars of the security, including the date on which the security was given and the value at which that person assesses it. Where reply not received (1.1) Where the trustee serves a notice pursuant to subsection (1), and the person on whom the notice is served does not file a proof of security within thirty days after the day of service of the notice, the trustee may thereupon, with leave of the court, sell or dispose of any property that was subject to the security, free of that security. Dividend on balance (2) A creditor is entitled to receive a dividend in respect only of the balance due to him after deducting the assessed value of his security. Trustee may redeem security (3) The trustee may redeem a security on payment to the secured creditor of the debt or the value of the security as assessed, in the proof of security, by the secured creditor. R.S., 1985, c. B-3, s. 128; 1992, c. 27, s. 51; 1999, c. 31, s. 25; 2004, c. 25, s. 68(F)
Bankruptcy and Insolvency Act — B-3 129
May order security to be sold 129 (1) Where the trustee is dissatisfied with the value at which a security is assessed, the trustee may require that the property the security comprises be offered for sale at such time and on such terms and conditions as may be agreed on between the creditor and the trustee or, in default of such an agreement, as the court may direct. Sale by public auction (2) Where a sale under subsection (1) is by public auction the creditor or the trustee on behalf of the estate may bid or purchase. (3) [Repealed, 1992, c. 27, s. 52] Costs of sale (4) The costs and expenses of a sale made under this section are in the discretion of the court. R.S., 1985, c. B-3, s. 129; 1992, c. 27, s. 52; 2004, c. 25, s. 69(F)
Bankruptcy and Insolvency Act — B-3 130
Creditor may require trustee to elect to exercise power 130 Notwithstanding subsection 128(3) and section 129, the creditor may, by notice in writing, require the trustee to elect whether he will exercise the power of redeeming the security or requiring it to be realized, and if the trustee does not, within one month after receiving the notice or such further time or times as the court may allow, signify in writing to the creditor his election to exercise the power, he is not entitled to exercise it, and the equity of redemption or any other interest in the property comprised in the security that is vested in the trustee shall vest in the creditor, and the amount of his claim shall be reduced by the amount at which the security has been valued. R.S., c. B-3, s. 101
Bankruptcy and Insolvency Act — B-3 131
Amended valuation by creditor 131 Where a creditor after having valued his security subsequently realizes it, or it is realized under section 129, the net amount realized shall be substituted for the amount of any valuation previously made by the creditor and shall be treated in all respects as an amended valuation made by the creditor. R.S., c. B-3, s. 102
Bankruptcy and Insolvency Act — B-3 132
Secured creditor may amend 132 (1) Where the trustee has not elected to acquire the security as provided in this Act, a creditor may at any time amend the valuation and proof on showing to the satisfaction of the trustee or the court that the valuation and proof were made in good faith on a mistaken estimate or that the security has diminished or increased in value since its previous valuation. Amendment at cost of creditor (2) An amendment pursuant to subsection (1) shall be made at the cost of the creditor and on such terms as the court orders, unless the trustee allows the amendment without application to the court. Rights and liabilities of creditor where valuation amended (3) Where a valuation has been amended pursuant to this section, the creditor (a) shall forthwith repay any surplus dividend that he may have received in excess of that to which he would have been entitled on the amended valuation; or (b) is entitled to be paid out of any money for the time being available for dividend any dividend or share of dividend that he may have failed to receive by reason of the amount of the original valuation before that money is made applicable to the payment of any future dividend, but he is not entitled to disturb the distribution of any dividend declared before the amendment is filed with the trustee. R.S., c. B-3, s. 103
Bankruptcy and Insolvency Act — B-3 133
Exclusion for non-compliance 133 Where a secured creditor does not comply with sections 127 to 132, he shall be excluded from any dividend. R.S., c. B-3, s. 104
Bankruptcy and Insolvency Act — B-3 134
No creditor to receive more than 100 cents in dollar 134 Subject to section 130, a creditor shall in no case receive more than one hundred cents on the dollar and interest as provided by this Act. R.S., c. B-3, s. 105
Bankruptcy and Insolvency Act — B-3 135
Trustee shall examine proof 135 (1) The trustee shall examine every proof of claim or proof of security and the grounds therefor and may require further evidence in support of the claim or security. Determination of provable claims (1.1) The trustee shall determine whether any contingent claim or unliquidated claim is a provable claim, and, if a provable claim, the trustee shall value it, and the claim is thereafter, subject to this section, deemed a proved claim to the amount of its valuation. Disallowance by trustee (2) The trustee may disallow, in whole or in part, (a) any claim; (b) any right to a priority under the applicable order of priority set out in this Act; or (c) any security. Notice of determination or disallowance (3) Where the trustee makes a determination under subsection (1.1) or, pursuant to subsection (2), disallows, in whole or in part, any claim, any right to a priority or any security, the trustee shall forthwith provide, in the prescribed manner, to the person whose claim was subject to a determination under subsection (1.1) or whose claim, right to a priority or security was disallowed under subsection (2), a notice in the prescribed form setting out the reasons for the determination or disallowance. Determination or disallowance final and conclusive (4) A determination under subsection (1.1) or a disallowance referred to in subsection (2) is final and conclusive unless, within a thirty day period after the service of the notice referred to in subsection (3) or such further time as the court may on application made within that period allow, the person to whom the notice was provided appeals from the trustee’s decision to the court in accordance with the General Rules. Expunge or reduce a proof (5) The court may expunge or reduce a proof of claim or a proof of security on the application of a creditor or of the debtor if the trustee declines to interfere in the matter. R.S., 1985, c. B-3, s. 135; 1992, c. 1, s. 20, c. 27, s. 53; 1997, c. 12, s. 89