Bankruptcy and Insolvency Act

Marginal note:Result of refusal of proposal

57 Where the creditors refuse a proposal in respect of an insolvent person,

• (a) the insolvent person is deemed to have thereupon made an assignment;

• (b) the trustee shall, without delay, file with the official receiver, in the prescribed form, a report of the deemed assignment;

• (b.1) the official receiver shall issue a certificate of assignment, in the prescribed form, which has the same effect for the purposes of this Act as an assignment filed under section 49; and

• (c) the trustee shall either

  • (i) forthwith call a meeting of creditors present at that time, which meeting shall be deemed to be a meeting called under section 102, or

  • (ii) if no quorum exists for the purpose of subparagraph (i), send notice, within five days after the day the certificate mentioned in paragraph (b) is issued, of the meeting of creditors under section 102,

  and at either meeting the creditors may by ordinary resolution, notwithstanding section 14, affirm the appointment of the trustee or appoint another licensed trustee in lieu of that trustee.