Companies' Creditors Arrangement
Act
Bill C-36 
(or the
Companies' Creditors Arrangement Act) is rarely used, since
it is restricted to companies whose debts exceed $5
million. The following presents the key points of
this bill, which have been harmonized with the Bankruptcy
and Insolvency Act.
- The file is opened by presenting a
request to the Courts.
- The initial timeframe for presenting
an arrangement to creditors is thirty
(30) days, but can be
extended.
- Creditors' recourse is
suspended.
- In the case of a commercial
proposal, the controller's duties and
powers are comparable to those of the designated
responsible party (trustee).
- The vote is conducted by category of
creditors: a numerical majority and 66 2/3 in cash.
