Directive No. 4

Delegation of Tasks

Issued: November 17, 1994

(Supersedes Directive No. 26R previously issued on January 4, 1991)

Interpretation

1. In this Directive,

   "Act"

   means the Bankruptcy and Insolvency Act;

   "administrator"

   means an administrator of consumer proposals as defined in section 66.11 of the Act;

   "trustee"

   means a trustee as defined in section 2 of the Act.

   Purpose

2. This Directive, issued pursuant to the authority of paragraph 5(4)(b) of the Act, sets out the circumstances in which trustees and administrators may delegate certain tasks in the administration of an estate to other individuals. It also lists those tasks which shall be performed by an individual trustee or an administrator.

   Context

3. In delegating tasks, trustees or administrators remain responsible for ensuring the administration is conducted in a professional and timely manner.
4. Trustees and administrators are required to establish adequate controls in the carrying out of their statutory duties.

   Delegation

5. The following criteria shall be considered in determining which tasks may be delegated, and to which individual:
   1. the internal control system in the office of trustees or administrators;
   2. the length of training and the accreditation of the individual; and
   3. the personal knowledge that trustees or administrators have of the individual's experience, capabilities and aptitudes relevant to the tasks in question.
6. The following tasks shall be performed by individual trustees, or administrators where applicable, and cannot be delegated:
   1. the acceptance of an appointment;
   2. attendance at, or chairmanship, of meetings of creditors, for
      1. Division I proposal;
      2. ordinary administration bankruptcy; or
      3. summary administration bankruptcy and Division II proposal where a proven creditor, or the Official Receiver, requests the presence of trustees;
   3. attendance at a meeting of inspectors upon the request of an inspector;
   4. the review and signing of all cheques drawn on estate accounts;
   5. ensuring that the internal control system is adequate and operational;
   6. the review and signing of the forms and documents listed in Schedule "A";
   7. other tasks specified by the Act, Rules or Directives.
7. Special arrangements may be made with the District Assistant Superintendent regarding the application of this directive to accommodate unusual circumstances.

The Superintendent of Bankruptcy
George F. Redling