Conduct of Trustees
Marginal note:Where trustee is not qualified to act
13.3 (1) Except with the permission of the court and on such conditions as the court may impose, no trustee shall act as trustee in relation to the estate of a debtor
(a) where the trustee is, or at any time during the two preceding years was,
(i) a director or officer of the debtor,
(ii) an employer or employee of the debtor or of a director or officer of the debtor,
(iii) related to the debtor or to any director or officer of the debtor, or
(iv) the auditor, accountant or legal counsel, or a partner or an employee of the auditor, accountant or legal counsel, of the debtor; or
(b) where the trustee is
(i) the trustee under a trust indenture issued by the debtor or any person related to the debtor, or the holder of a power of attorney under an act constituting a hypothec within the meaning of the Civil Code of Québec that is granted by the debtor or any person related to the debtor, or
(ii) related to the trustee, or the holder of a power of attorney, referred to in subparagraph (i).
Marginal note:Copy of application to Superintendent
(1.1) A trustee who applies for the permission of the court for the purposes of subsection (1) shall without delay send a copy of the application to the Superintendent.
Marginal note:Where disclosure required
(2) No trustee shall act as a trustee in relation to the estate of a debtor where the trustee is already
(a) the trustee in the bankruptcy of, or in a proposal concerning, any person related to the debtor, or
(b) the receiver, within the meaning of subsection 243(2), or the liquidator of the property of any person related to the debtor,
without making, at the time of being appointed as trustee in relation to the estate of the debtor and at the first meeting of creditors, full disclosure of that fact and of the potential conflict of interest.
- 1992, c. 27, s. 9;
- 1997, c. 12, s. 9(F);
- 2004, c. 25, s. 13;
- 2005, c. 47, s. 11;
- 2007, c. 36, s. 4(F).
Marginal note:Trustee may act for secured creditor
13.4 (1) No trustee may, while acting as the trustee of an estate, act for or assist a secured creditor to assert a claim against the estate or to realize or otherwise deal with a security that the secured creditor holds, unless the trustee has obtained a written opinion from independent legal counsel that the security is valid and enforceable against the estate.
Marginal note:Notification by trustee
(1.1) Forthwith on commencing to act for or assist a secured creditor of the estate in the manner set out in subsection (1), a trustee shall notify the Superintendent and the creditors or the inspectors
(a) that the trustee is acting for the secured creditor;
(b) of the basis of any remuneration from the secured creditor; and
(c) of the opinion referred to in subsection (1).
Marginal note:Trustee to provide opinion
(2) Within two days after receiving a request therefor, a trustee shall provide the Superintendent with a copy of the opinion referred to in subsection (1) and shall also provide a copy to each creditor who has made a request therefor.
- 1992, c. 27, s. 9;
- 1997, c. 12, s. 10;
- 2004, c. 25, s. 14(E);
- 2005, c. 47, s. 12;
- 2007, c. 36, s. 5.
- Date modified: