Bill C-12 Update

On December 14, 2007, Bill C-12, An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act, the Wage Earner Protection Program Act and chapter 47 of the Statutes of Canada, 2005 received Royal Assent. No amendments were made by the Senate such that the bill became chapter 36 of the Statutes of Canada, 2007. Contrary to what you may have heard or read, none of the amendments are in force yet. A coming into force date will be fixed by order of the Governor in Council, which has not yet been tabled.

This legislation will mean significant changes to the Bankruptcy and Insolvency Act as well as to the bankruptcy and insolvency processes for the Office of the Superintendent of Bankruptcy (OSB), trustees and other stakeholders. In addition, the OSB will assume new responsibilities for monitoring the Companies’ Creditors Arrangement Act filings.

To manage the many challenges of implementing the new legislation, the OSB has established a program office to provide direction and information to all stakeholders. The program office is in the process of updating the OSB Website as well as creating a unique e-mail address where any questions concerning the legislation, or its implementation, can be directed. The program office is also preparing a brief summary of the legislative changes. The legislative summary and further information concerning the e-mail address will be forthcoming.

While we recognize that there will be significant impacts on both trustee practices and the OSB, we intend to work closely with trustees to ensure a successful implementation of the new legislation.