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Bankruptcy and Insolvency Act

Version of section 85 from 2002-12-31 to 2004-12-14:

Marginal note:Application to limited partnerships

  •  (1) This Act applies to limited partnerships in like manner as if limited partnerships were ordinary partnerships, and, on all the general partners of a limited partnership becoming bankrupt, the property of the limited partnership vests in the trustee.

  • Marginal note:Actions by trustee and bankrupt’s partner

    (2) Where a member of a partnership becomes bankrupt, the court may authorize the trustee to commence and prosecute any action in the names of the trustee and of the bankrupt’s partner, and any release by the partner of the debt or demand to which the action relates is void.

  • Marginal note:Notice to partner

    (3) Notice of the application for authority to commence an action under subsection (2) shall be given to the bankrupt’s partner, who may show cause against it, and on his application the court may, if it thinks fit, direct that he shall receive his proper share of the proceeds of the action, and, if he does not claim any benefit therefrom, he shall be indemnified against costs in respect thereof as the court directs.

  • R.S., c. B-3, s. 63

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