Government measures in key jurisdictions 3rd edition final - Flipbook - Page 28
Canada
Insolvency
Has the government
made any changes
to insolvency
legislation?
While Canada’s main insolvency statutes, the Bankruptcy and Insolvency Act (
) and
Companies’ Creditors Arrangement Act (
) have not been amended at the time of writing,
new legislation and amendments to existing legislation do impact the insolvency process. In
addition, guidance from other participants in the insolvency regulatory process will affect
insolvency practice and procedures. The following are some examples.
•
As part of the federal government’s CERB program, the income support benefit provided will
not be subject to the operation of any law relating to bankruptcy and insolvency.
•
Several provinces have enacted legislation to temporarily suspend limitation periods,
which apply to the insolvency process.
•
The Office of the Superintendent of Bankruptcy Canada, which regulates Licensed Insolvency
Trustees (
) and is the regulator under the BIA and CCAA, has recommended that LITs work
with debtors and third parties to ensure that they are handling insolvencies in a flexible
manner that is the least prejudicial to individuals in financial distress. Under the BIA, the courts
have broad authority to allow bankruptcy cases to move forward in irregular circumstances if
the courts believe it is appropriate.
Contractual
Issues
Each Canadian province has its own legislation outlining the requirements for doing business
electronically and using eSignatures. In Ontario, British Columbia and Alberta, barring a few important
exceptions, eSignatures may be utilized for closing transactions to create binding obligations.
What measures
have been taken
to reinforce
contracts?
Documents requiring a traditional “wet ink” signature include:
•
wills, codicils and trusts created by wills or codicils,
•
powers of attorney regarding an individual’s financial affairs or personal care,
•
negotiable instruments (such as certificated securities and negotiable promissory notes),
•
beneficiary designations (such as for life insurance),
•
certain real estate matters, and
•
documents that are from time to time prescribed or that belong to a prescribed class.
With regard to real estate matters, parties may use eSignatures to sign documents that create or
transfer an interest in land. However, it is important to note that certain restrictions may apply
depending on the applicable province.
For a more detailed explanation, see the Cassels Comment located here.
Other contractual matters, including material adverse effect and material adverse change provisions
and Force Majeure clauses, have been impacted by the effects ofCovid-19.
For more information, see additional Cassels Comments located here and here.
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Government measures in key jurisdictions