Legal news and trends for Canadian in-house counsel and c-suite executives
Issue link: https://digital.canadianlawyermag.com/i/50880
Bill C-22 was created following the report and was brought forward to target key areas to revise Canada's aging bankruptcy law. Those areas included wage claims, secured creditors and receivers, commer- cial reorganizations, consumer proposals, consumer bankruptcies, Crown priority, and unpaid suppliers. The legislation also created a parlia- mentary committee to review the laws every three years. The committee would be known as the bankruptcy and insol- vency advisory committee. The law was finally brought into force in June 1992. The legislation stood untouched for five years and, in 1997, the Liberal govern- ment of the time proposed Bill C-5 refin- ing Canada's bankruptcy laws once again. This time the bill made changes to the Companies' Creditors Arrangement Act. It contained new provisions relating to international insolvencies and securi- ties firm insolvencies. Parts of Bill C-5 were brought into force in 1997 with the final statutes being implemented in 1998. Seven years later, then-prime min- ister Paul Martin introduced 140 pages of amendments to bankruptcy and insol- vency laws, under the distinction of Bill C-55. That legislation was the basis for the present bill C-12. It is interesting that while so many governments have sought changes to insolvency and bankruptcy laws, only two since 1966 have been successful in bringing the acts into force. As it stands, bill C-12 has brought some of its amend- ments into law. One such part is the Wage Earner Protection Program Act or WEPP. The WEPP is designed to use gov- ernment funds to satisfy claims of eli- gible workers, up to prescribed maxi- mum amounts, for unpaid wages, vaca- tion pay, severance pay, and termination pay owed to them when their employer declares bankruptcy or becomes subject to a receivership, says WeirFoulds LLP associate Paul Guy. In-house counsel and corporate boards looking at bankruptcy, restructuring, and insolvency amendments passed, yet A Tradition of Business not in force, may be left scratching their heads as to what laws to follow. The changes may sit in limbo in Ottawa, but in the boardrooms of the country they are often being put in practice, Sellers says. "There are some differences between current practice and what the legislature has decided to enact," he says. "But on a general basis it's pretty much the case that people are starting to frame their approach to cases in anticipation of the legislation coming into effect. "Even though this legislation hasn't been proclaimed, it is starting to have an impact on the way cases are starting to be prepared." Stikeman Elliott LLP insolvency and restructuring group co-head Sean Dunphy offers his opinion on the status of the legislation and when he thinks it will come into force. "I've stopped trying to be a prophet. It's been just around the corner for the last three or four years and at a certain point you just lose your interest . . . until you know they are serious." IH Whether conducting business in Canada or abroad, Aird & Berlis LLP understands the realities of your work. Our clients benefit from the firm's solid relationships with major institutions, government authorities and renowned national and international law firm affiliates. We combine the depth and strength of Canada's largest firms with the creativity and effectiveness of smaller firms. Rely on us for practical legal counsel. Partnership. Results. Success. Brookfield Place, 181 Bay Street Suite 1800, Box 754 Toronto, ON M5J 2T9 Canada www.airdberlis.com 20 • JUNE 2009 Untitled-5 1 INHOUSE Eldon Bennett Managing Partner ebennett@airdberlis.com 416.865.7704 5/4/09 10:35:59 AM