Inspectors' Handbook

For Persons Appointed as Inspectors under the Bankruptcy and Insolvency Act

Table of Contents

Part I

General Information

• The trustee's role
• The inspector's role

Part II

Board of Inspectors

• Appointment of inspectors
• Defects or irregularities in the appointment of inspectors
• Vacancy on the board of inspectors
  • Resignation of inspectors
  • Revoking appointment of inspectors
• Inspectors’ responsibilities
  • Action
    • Inspectors’ meetings
    • Requirement to call a meeting of creditors
    • Examinations
    • Insurance coverage
    • Limitations on carrying on the bankrupt's business
  • Authorization
  • Supervision
    • General
    • Access to information
    • Specific duties of inspectors
    • Bankrupt's discharge
    • Discharge of trustee
• Sale of assets
  • Disclaimer on secured assets
  • Return of property to debtor
• Requirement to pay dividends
• Proposals under Part III of the Act

Part III

Dealing with Bankruptcy Abuses

• Powers of the Superintendent of Bankruptcy
• Trustee Compliance
• Inspectors' role in handling abuses
• Statutory offences

Part IV

Inspectors' Fees

• Range of Payments

Division Offices of the Superintendent of Bankruptcy

Glossary

© Industry Canada, 2005
Cat. Iu76-1/2005E-HTML
ISBN 0-662-39635-9

Disclaimer

The material and information provided by the Office of the Superintendent of Bankruptcy in this Guide is for informational purposes only and should not be considered as legal advice. Although every effort has been made to ensure the accuracy, the currency and the reliability of the content, the Office of the Superintendent of Bankruptcy does not offer any guarantee in that regard. This information is not intended to be a substitute for professional advice provided by lawyers or authorized bankruptcy specialists. You may wish to contact a lawyer or a trustee from your province or territory in order to get accurate information or advice tailored to the facts of your particular circumstances.

This booklet

is a guide for individuals who have been appointed inspectors under the Act. Its aim is to provide information about the role and responsibilities of inspectors, as well as to highlight and explain relevant provisions of the Act. Although the material is often technical and complex, we have attempted to present it as clearly as possible without oversimplifying substantive aspects of the Act. Inspectors have a significant role to play in the administration of insolvent estates. Creditors appoint inspectors to represent them during the administration of the estate. Inspectors act in a fiduciary capacity, in that they are generally responsible to the body of creditors who appoint them, and should perform their duties impartially and in the interests of the creditors.

Office of the Superintendent of Bankruptcy

The Superintendent of Bankruptcy is responsible for ensuring compliance with the Bankruptcy and Insolvency Act (Act) and has the mandate to “supervise the administration of all estates and matters to which this Act applies.” To ensure this compliance, the Act provides the Superintendent with various administrative and investigative powers. Furthermore, through the mission of the Office of the Superintendent of Bankruptcy (OSB) — to protect the integrity of the Canadian bankruptcy and insolvency system — the Superintendent helps foster and maintain investor and lender confidence in the Canadian marketplace. To achieve its mission, the OSB concentrates its efforts in three key areas, namely:

• providing an effective, efficient and uniform national program that will ensure compliance with the Act;
• maintaining a sound regulatory policy and solid legislative base in response to changing market conditions; and
• encouraging the active participation of private-sector stakeholders to ensure efficiency in estate administration.

Our Web site address is http://osb-bsf.ic.gc.ca