October 29, 2019
In the Regulatory Modernization section of the Budget Implementation Act, two amendments to the Bankruptcy and Insolvency Act (BIA) will come into force on November 1, 2019.
The first amendment to subsection 26 (1) of the BIA will allow Licensed Insolvency Trustees (LIT) to reduce paper storage. LITs will be able to keep electronically all records which were previously required to be stored in their original paper format, including all minutes, proceedings had, and resolutions passed at any meeting of creditors or inspectors.
The second amendment is to subsection 13.2 (2) of the BIA, which concerns the date on which LITs are required to renew their licences and pay their fees. The legislative amendment will allow a more convenient date to be prescribed in the BIA General Rules to help eliminate the administrative burden of paying for fees during statutory holidays. A new date is to be chosen in collaboration with LITs, but until then, the current annual renewal date remains December 31.
Please note that Innovation, Science and Economic Development Canada has published a news release regarding reforms to the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act, designed to enhance retirement security by making the insolvency process fairer, more transparent, and more accessible.
The news release can be accessed on ISED's website.