June 10, 2014

CAIRP Submissions to Industry Canada

A. Comments on the Public Consultation on the Canada Business Corporations Act

Members can find a copy of CAIRP’s recent submission to Industry Canada on the public consultations on the review of the Canada Business Corporations Act (the “CBCA”) by clicking on the following link: http://www.cairp.ca/_files/file.php?fileid=fileNTQiGhkvwk&filename=file_Comments_on_the_Public_Consultations_on_the_CBCA_May_2014.pdf

Appendix B of our submission can be found at:  http://www.cairp.ca/_files/file.php?fileid=filerRiKAmcMaI&filename=file_Appendix_B_CBCA_Section_192_Restructurings_2008_2013.pdf

While the consultation paper invited comments on a full range of corporate governance matters relating to the Act, CAIRP’s submission aims to present a better understanding of the developing case law treating arrangements under section 192 of the Act and the implications for stakeholders. As a result of our research, CAIRP does not believe that the present s. 192 regime is appropriate for the restructuring of insolvent companies. A restructuring under the CBCA, in the case of insolvent or near-insolvent companies or groups, deprives stakeholders of the safeguards available under the under the Companies’ Creditors Arrangement Act (the “CCAA”).

In order to preserve the integrity, transparency and commercial certainty of the insolvency and restructuring regime in Canada, our submission recommends that certain stakeholder safeguards be implemented in s. 192 arrangements which contemplate both the compromise of debt and a Stay order.

B. Industry Canada’s Discussion Paper on the Review of the BIA and CCAA

Industry Canada recently released its long-awaited discussion paper on the legislated review of the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act. The discussion paper can be found at: http://www.ic.gc.ca/eic/site/cilp-pdci.nsf/eng/cl00871.html

The discussion paper identifies numerous consumer and corporate insolvency matters and raises several administrative and technical issues as well.

Members are reminded that the deadline for submitting comments on the discussion paper so that CAIRP can prepare its submission is June 13th. Comments can be sent to info@cairp.ca

Your comments by June 13 are all the more important as the time required to prepare our response to the discussion paper on the many consumer and corporate issues precludes us from having a draft submission available for Member comment in advance of Industry Canada’s July 15, 2014 deadline.

 


Canadian Association of Insolvency and Restructuring Professionals
277 Wellington Street West, Toronto ON M5V 3H2
Phone 416.204.3242 | Fax 416.204.3410 | Email info@cairp.ca
www.cairp.ca