|
|
|
|
| Assistance to
be provided
|
(4) The debtor company shall
|
|
|
|
|
|
|
|
|
|
| Non-liability
in respect of
certain
matters
|
11.8 (1) Notwithstanding anything in any
federal or provincial law, where a monitor
carries on in that position the business of a
debtor company or continues the employment
of the company's employees, the monitor is
not by reason of that fact personally liable in
respect of any claim against the company or
related to a requirement imposed on the
company to pay an amount where the claim
arose before or upon the monitor's
appointment.
|
|
| Status of
claim ranking
|
(2) A claim referred to in subsection (1)
shall not rank as costs of administration.
|
|
| Liability in
respect of
environmental
matters
|
(3) Notwithstanding anything in any federal
or provincial law, a monitor is not personally
liable in that position for any environmental
condition that arose or environmental damage
that occurred
|
|
|
|
|
|
|
|
|
|
| Reports, etc.,
still required
|
(4) Nothing in subsection (3) exempts a
monitor from any duty to report or make
disclosure imposed by a law referred to in that
subsection.
|
|
| Non-liability
re certain
orders
|
(5) Notwithstanding anything in any federal
or provincial law, where an order is made
which has the effect of requiring a monitor to
remedy any environmental condition or
environmental damage affecting property
involved in a proceeding under this Act, the
monitor is not personally liable for failure to
comply with the order
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stay may be
granted
|
(6) The court may grant a stay of the order
referred to in subsection (5) on such notice and
for such period as the court deems necessary
for the purpose of enabling the monitor to
assess the economic viability of complying
with the order.
|
|
| Costs for
remedying not
costs of
administration
|
(7) Where the monitor has abandoned or
renounced any interest in real property
affected by the environmental condition or
environmental damage, claims for costs of
remedying the condition or damage shall not
rank as costs of administration.
|
|
| Priority of
claims
|
(8) Any claim 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 shall rank 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.
|
|
|
|
125. The Act is amended by adding the
following after section 18:
|
|
| Law of set-off
to apply
|
18.1 The law of set-off applies to all claims
made against a debtor company and to all
actions instituted by it for the recovery of
debts due to the company in the same manner
and to the same extent as if the company were
plaintiff or defendant, as the case may be.
|
|
| Certain
Crown claims
|
18.2 (1) Where an order contains a
provision authorized by subsection 11.4(1),
unless Her Majesty consents, no compromise
or arrangement shall be sanctioned by the
court that does not provide for the payment in
full to Her Majesty in right of Canada or a
province, within six months after court
sanction of the compromise or arrangement,
of all amounts of a kind that could be subject
to a demand under subsection 224(1.2) of the
Income Tax Act or under any substantially
similar provision of provincial legislation and
that were outstanding at the time of the
application for an order under section 11.
|
|
| Default of
remittance to
Crown
|
(2) Where an order contains a provision
authorized by subsection 11.4(1), no
compromise or arrangement shall be
sanctioned by the court if, at the time the court
hears the application for sanction, Her
Majesty in right of Canada or a province
satisfies the court that the company is in
default on any remittance of an amount
referred to in subsection (1) that became due
after the time of the application for an order
under section 11.
|
|
| Deemed trusts
|
18.3 (1) Subject to subsection (2),
notwithstanding any provision in federal or
provincial legislation that has the effect of
deeming property to be held in trust for Her
Majesty, property of a debtor company shall
not be regarded as held in trust for Her Majesty
unless it would be so regarded in the absence
of that statutory provision.
|
|
| Exceptions
|
(2) Subsection (1) does not apply in respect
of subsection 227(4) of the Income Tax Act,
subsection 23(3) of the Canada Pension Plan
or subsection 57(2) of the Unemployment
Insurance Act, or in respect of provisions of
provincial legislation where
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Status of
Crown claims
|
18.4 (1) In relation to a proceeding under
this Act, all claims, including secured claims,
of Her Majesty in right of Canada or a
province or any body under an enactment
respecting workers' compensation, in this
section and in section 18.5 called a ``workers'
compensation body'', rank as unsecured
claims.
|
|
| Exceptions
|
(2) Subsection (1) does not apply
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operation of
similar
legislation not
affected
|
(3) Subsection (1) does not affect the
operation of any provision of provincial
legislation that is substantially similar to
subsection 224(1.2) of the Income Tax Act.
|
|
| Statutory
Crown
securities
|
18.5 (1) In relation to a proceeding under
this Act in respect of a debtor company, a
security provided for in federal or provincial
legislation for the sole or principal purpose of
securing a claim of Her Majesty in right of
Canada or a province or a workers'
compensation body is valid in relation to
claims against the company only if the
security is registered before the date of the
initial application for an order under section
11 pursuant to any system of registration of
securities that is available not only to Her
Majesty in right of Canada or a province or a
workers' compensation body, but also to any
other creditor who holds a security, and that is
open to the public for information or the
making of searches.
|
|
| Effect of
security
|
(2) A security referred to in subsection (1)
that is registered in accordance with that
subsection
|
|
|
|
|
|
|
|
|
|
|
|
INTERNATIONAL INSOLVENCIES |
|
| Definitions
|
18.6 (1) In this section,
|
|
| ``foreign
proceeding'' « procédures intentées à l'étranger »
|
``foreign proceeding'' means a judicial or
administrative proceeding commenced
outside Canada in respect of a debtor under
a law relating to bankruptcy or insolvency
and dealing with the collective interests of
creditors generally;
|
|
| ``foreign
representative
'' « représentant étranger »
|
``foreign representative'' means a person,
other than a debtor, holding office under the
law of a jurisdiction outside Canada who,
irrespective of the person's designation, is
assigned, under the laws of the jurisdiction
outside Canada, functions in connection
with a foreign proceeding that are similar to
those performed by a trustee, liquidator or
other administrator appointed by the court.
|
|
| Powers of
court
|
(2) The court may, in respect of a debtor
company, make such orders and grant such
relief as it considers appropriate to facilitate,
approve or implement arrangements that will
result in a co-ordination of proceedings under
this Act with any foreign proceeding.
|
|
| Terms and
conditions of
orders
|
(3) An order of the court under this section
may be made on such terms and conditions as
the court considers appropriate in the
circumstances.
|
|
| Court not
precluded
from applying
certain rules
|
(4) Nothing in this section precludes the
court on the application of a foreign
representative or any other interested person
from applying such legal or equitable rules
governing the recognition of foreign
insolvency orders and assistance to foreign
representatives as are not inconsistent with the
provisions of this Act.
|
|
| Court not
compelled to
give effect to
certain orders
|
(5) Nothing in this section requires the court
to make any order that is not in compliance
with the laws of Canada or to enforce any
order made by a foreign court.
|
|
| Court may
seek
assistance
from foreign
tribunal
|
(6) The court may seek the aid and
assistance of a court, tribunal or other
authority in a foreign proceeding by order or
letter of request or otherwise as the court
considers appropriate.
|
|
| Foreign
representative
status
|
(7) An application to the court by a foreign
representative under this section does not
submit the foreign representative to the
jurisdiction of the court for any other purpose
except with regard to the costs of the
proceedings, but the court may make any
order under this section conditional on the
compliance by the foreign representative with
any other order of the court.
|
|
| Claims in
foreign
currency
|
(8) Where a compromise or arrangement is
proposed in respect of a debtor company, a
claim for a debt that is payable in a currency
other than Canadian currency shall be
converted to Canadian currency as of the date
of the first application made in respect of the
company under section 10 unless otherwise
provided in the proposed compromise or
arrangement.
|
|
|
|
126. The Act is amended by adding the
following after section 20:
|
|
| Act binding
on Her
Majesty
|
21. This Act is binding on Her Majesty in
right of Canada or a province.
|
|
| Regulations
|
22. The Governor in Council may make
regulations prescribing anything that is by this
Act to be prescribed and the information to be
given in any form to be used under this Act.
|
|
| Review by
Parliament
|
23. (1) This Act shall, on the expiration of
seven years after the coming into force of this
section, stand referred to such committee of
the Senate, of the House of Commons or of
both Houses of Parliament as may be
designated or established to review the
administration and operation of this Act.
|
|
| Report
|
(2) The committee shall, within one year
after beginning the review or within such
further time as the Senate, the House of
Commons or both Houses of Parliament, as
the case may be, may authorize, submit a
report on the review to that House or both
Houses, including a statement of any changes
to this Act that the committee would
recommend.
|
|
| Application
|
127. Section 120, 121, 122, 123, 124, 125
or 126 applies to proceedings commenced
under the Companies' Creditors
Arrangement Act after that section comes
into force.
|
|
| R.S., c. 1 (5th
Supp.); 1994,
cc. 7, 8, 13,
21, 28, 29, 38,
41; 1995, cc.
1, 3, 11, 18,
21
|
INCOME TAX ACT |
|
| 1994, c. 21, s.
101(3)
|
128. The portion of subsection 224(1.2) of
the Income Tax Act before paragraph (a) is
replaced by the following:
|
|
| Garnishment
|
(1.2) Notwithstanding any other provision
of this Act, the Bankruptcy and Insolvency
Act, any other enactment of Canada, any
enactment of a province or any law, but
subject to subsections 69(1) and 69.1(1) of the
Bankruptcy and Insolvency Act and section
11.4 of the Companies' Creditors
Arrangement Act, where the Minister has
knowledge or suspects that a particular person
is, or will become within one year, liable to
make a payment
|
|