Marginal note:Superintendent may take control
510. (1) Subject to this Act, where any of the circumstances described in subsection (1.1) exist in respect of a company, the Superintendent may
(a) take control, for a period not exceeding sixteen days, of the assets of the company and the assets held in trust by or under the administration of the company; or
(b) unless the Minister advises the Superintendent that the Minister is of the opinion that it is not in the public interest to do so,
(i) take control, for a period exceeding sixteen days, of the assets of the company and the assets held in trust by or under the administration of the company,
(ii) where control of assets has been taken under paragraph (a), continue the control beyond the sixteen days referred to in that paragraph, or
(iii) take control of the company.
Marginal note:Circumstances for taking control
(1.1) Control by the Superintendent under subsection (1) may be taken in respect of a company where
(a) the company has failed to pay its liabilities or, in the opinion of the Superintendent, will not be able to pay its liabilities as they become due and payable;
(b) [Repealed, 2001, c. 9, s. 565]
(c) the assets of the company are not, in the opinion of the Superintendent, sufficient to give adequate protection to the company’s depositors and creditors;
(d) any asset appearing on the books or records of the company or held in trust by or under the administration of the company is not, in the opinion of the Superintendent, satisfactorily accounted for;
(e) the regulatory capital of the company has, in the opinion of the Superintendent, reached a level or is eroding in a manner that may detrimentally affect the company’s depositors or creditors;
(f) the company has failed to comply with an order of the Superintendent under paragraph 473(3)(a);
(g) the company’s deposit insurance has been terminated by the Canada Deposit Insurance Corporation; or
(h) in the opinion of the Superintendent, any other state of affairs exists in respect of the company that may be materially prejudicial to the interests of the company’s depositors or creditors or the beneficiaries of any trust under the company’s administration, including where proceedings under a law relating to bankruptcy or insolvency have been commenced in Canada or elsewhere in respect of the holding body corporate of the company.
Marginal note:Notice of proposed action
(1.2) The Superintendent must notify a company of any action proposed to be taken in respect of it under paragraph (1)(b) and of its right to make written representations to the Superintendent within the time specified in the notice not exceeding ten days after it receives the notice.
Marginal note:Objectives of Superintendent
(2) Where, pursuant to subsection (1), the Superintendent has control of the assets of a company referred to in that subsection, the Superintendent may do all things necessary or expedient to protect the rights and interests of the depositors and creditors of the company or the beneficiaries of any trust under the administration of the company.
Marginal note:Powers of Superintendent
(3) Where, pursuant to subsection (1), the Superintendent has control of the assets of a company referred to in that subsection,
(a) the company shall not make, acquire or transfer any loan or make any purchase, sale or exchange of securities or any disbursement or transfer of cash of any kind without the prior approval of the Superintendent or a representative designated by the Superintendent; and
(b) no director, officer or employee of the company shall have access to any cash or securities held by or under the administration of the company unless
(i) a representative of the Superintendent accompanies the director, officer or employee, or
(ii) the access is previously authorized by the Superintendent or the Superintendent’s representative.
- 1991, c. 45, s. 510;
- 1996, c. 6, s. 127;
- 2001, c. 9, s. 565.
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