Bankruptcies & CCAA
In Unique Broadband Systems, Inc. (Re), 2014 ONCA 538, the Ontario Court of Appeal ruled that a director of a company breached his fiduciary duties in approving an excessive compensation package for himself and the other directors and that his actions were not protected by the business judgment rule.
Appeal court rules that, in context of CCAA, pension plan deficiency claims can have priority over secured creditors
In Indalex Limited (Re), 2011 ONCA 265, the Ontario Court of Appeal ruled that, in the context of Companies' Creditors Arrangement Act (CCAA) proceedings, pension plan deficiency claims can, in certain circumstances, have priority over secured creditors.
Harper commits Conservatives to tax break for EI premiums; Ignatieff promises CPP measures from Liberals
Work related issues have been front and centre of the federal election campaign the last two days. Yesterday, Stephen Harper committed the Conservatives to a tax break for Employment Insurance premiums. Today, Michael Ignatieff promised three different measures by the Liberals to improve the Canada Pension Plan.
Law firm McMillan LLP has prepared a comprehensive "Overview of insolvency proceedings in Canada" (October 2009). It outlines the Canadian legislative framework and briefly describes the receivership process, the bankruptcy regime and the formal restructuring alternatives available to debtors. The three key statutes it addresses are:
- the Bankruptcy and Insolvency Act,
- the Companies' Creditors Arrangement Act, and
- the Winding-up and Restructuring Act.
Ontario labour and employment lawyer Janice B. Payne has written a paper entitled "CCAA: The Ultimate Restructure" (September 21, 2009). The first part of the paper provides an overview of the Companies' Creditors Arrangement Act ("CCAA").
The second part of the paper focuses on employment issues under the CCAA and specifically addresses: read more »
Vancouver lawyer Aaron B. Singer has written a paper on, "Director and Officer Liability in Insolvent Circumstances".
The paper addresses, "the potential liabilities of directors and officers, examine director and officer liability insurance, and discuss possible ways that directors can limit their potential personal liability during insolvency." Of particular note, it reviews the applicable employment law statutes and pension and employment insurance law statutes.
Richard Press, a lawyer at Davis LLP co-authored a paper entitled "Employment in Tough Times - Interplay Between Employment and Insolvency" for the Employment Law Conference - 2009 CLE in Vancouver.
"Employee Super-Priority Under the WEPPA and the BIA: Comments on Ted LeRoy Trucking Ltd. and 383838 B.C. Ltd."
Vancouver lawyers Mary I.A. Buttery and Cindy Cheuk prepared a paper entitled "Employee Super-Priority Under the WEPPA and the BIA: Comments on Ted LeRoy Trucking Ltd. and 383838 B.C. Ltd. (Re)" for the May 29, 2009 Bankruptcy and Insolvency CLE.
The paper sets out the implications of the 2008 Wage Earner Protection Program Act "on insolvency practice and provides a brief analysis of Ted LeRoy Trucking Ltd. and 383838 B.C. Ltd. (Re), 2009 BCSC 41, the only reported decision regarding the WEPPA (as at the date of this paper) since the legislation came into force."
(Update: the BC Court of Appeal upheld the trial judge's decision in 2010 BCCA 223).