Directive No. 4R
Coming into force September 18, 2009

Delegation of Tasks

Version signed by the Superintendent: Directive No. 4R (PDF Format, 2.97 MB, 9 pages)

Issued: August 14, 2009

(Supersedes Directive No. 4 issued on November 17, 1994, on the same topic)

• Interpretation

1. In this Directive,

   "Act" means the Bankruptcy and Insolvency Act;

   "administrator" means an administrator of consumer proposals as defined in section 66.11 of the Act;

   "OSB" means the Office of the Superintendent of Bankruptcy;

   "Rules" means the Bankruptcy and Insolvency General Rules;

   "trustee" means a trustee as defined in section 2 of the Act.

   Authority and Purpose

2. This Directive is issued pursuant to the authority of paragraph 5(4)(b) of the Act.

3. The purpose of this Directive is to set out the circumstances under which trustees and administrators may delegate certain tasks in the administration of an estate to other individuals. It also lists those tasks that shall be performed by an individual trustee or an administrator.

   Policy

4. In delegating tasks, trustees or administrators remain responsible for ensuring that the administration is conducted in a professional and timely manner.

5. Trustees and administrators are required to establish adequate controls in carrying out their statutory duties.

   Delegation

6. The following criteria shall be considered in determining which tasks may be delegated, and to which individual:

   (a) the internal control system in the offices of trustees or administrators;

   (b) the length of training and the accreditation of the individual; and

   (c) the personal knowledge that trustees or administrators have of the individual's experience, capabilities and aptitudes relevant to the tasks in question.

7. The following tasks shall be performed by individual trustees, or administrators where applicable, and cannot be delegated:

   (a) accepting an appointment;

   (b) chairing meetings of creditors for

   i) a Division I proposal;

   ii) an ordinary administration bankruptcy; or

   iii) a summary administration bankruptcy and Division II proposal where a proven creditor, or the Official Receiver, requests the trustee to chair the meeting;

   (c) chairing a meeting of inspectors upon the request of an inspector;

   (d) reviewing and signing all cheques drawn on estate accounts;

   (e) ensuring that the internal control system is adequate and operational;

   (f) reviewing and signing the forms and documents listed in Schedule A; and

   (g) other tasks specified by the Act, the Rules or Directives.

8. Special arrangements may be made with the designated senior bankruptcy analyst regarding the application of this Directive to accommodate unusual circumstances.

   Coming into Force

9. This Directive comes into force on September 18, 2009.

   Enquiries

10. For any questions pertaining to this Directive, please contact your local OSB office.

Apendix A

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