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Review of the Trustee Licensing Regulatory Framework
Consultation Paper - Part Two
Part Two: Administrative Practices
Issue number 5 — Corporate Names
Current Context
According to the Directive on Trustee Licensing, the name of a corporate trustee can only be composed of the names of one or more trustees or accountants that are practising or have actively practised either as trustees or accountants. The name may also consist of the name of a monitor appointed in Companies' Creditors Arrangement Act proceedings commenced after September 30, 1997, and before September 18, 2009.
For additional background information, refer to:
- Annex H: Corporate Names
Issue
The Office of the Superintendent of Bankruptcy (OSB) is considering a modernized approach to corporate names, while still striving to respect the need for fairness and transparency in the marketplace, that would allow for removal of the requirement that corporate trustee names be composed of the names of practising trustees or accountants in the firm. The OSB envisions a policy whereby the firm name will not be accepted by the OSB if it:
- is false or misleading;
- contravenes professional good taste;
- brings the profession into disrepute;
- includes a statement or claim that cannot be substantiated by the firm;
- causes confusion as to the real identity of the individuals in the firm;
- consists of a purely descriptive name (for example, Ottawa Insolvency Centre Inc.) or an acronym that is not made up of the initials of individuals (for example, AAA Trustee Inc.); or
- is not in the public interest in the opinion of the Superintendent of Bankruptcy.
Issue Number 6 — Closed Company (or Private Company) and Share Ownership
Current Context
According to the Directive on Trustee Licensing, a corporate trustee shall be a private or closed company as defined in the applicable legislation.
For additional background information, refer to:
- Annex I: Closed company (or private company) and share ownership
Issue
The Office of the Superintendent of Bankruptcy is considering adapting restrictions on corporate trustees to allow for a variety of corporate structures; however, it is thought to be necessary to restrict the corporate entity to one that does not offer shares to the public. Other restrictions on control of the corporate entity being in the hands of an active trustee are also being considered.
