Directive No. 7

Inventory of Estate Assets

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Directive No. 7

142 KB, 8 pages

Issued: 

(Supersedes Directive No. 31 on the same topic.)

Interpretation

  1. In this Directive,
    "Act"
    means the Bankruptcy and Insolvency Act;
    "inventory"
    means a list of the property of the debtor made pursuant to the standards of this directive;
    "trustee"
    includes a trustee as defined in section 2 of the Act, an interim receiver, and an administrator of consumer proposals as appointed in accordance with section 66.11 of the Act.

Purpose

  1. This Directive, issued pursuant to the authority of paragraphs 5(4)(b) and (c) of the Act, sets the standards for making an inventory.

Background

  1. (1) Subsection 16(3) of the Act states: "The trustee shall, as soon as possible, take possession of the deeds, books, records and documents and all property of the bankrupt and make an inventory…".

    (2) The standards of this directive shall be complied with in all:

    1. bankruptcies;
    2. interim receiverships where required by the court to make an inventory; and
    3. proposals where the trustee is in possession or control of assets conveyed to him/her by the debtor for purposes of either distribution or realization.

Standards

  1. The inventory shall be divided into three parts:
    1. All items which vest in the trustee,
    2. all items which belong to a third party, and
    3. all items, where, in the opinion of the trustee, ownership is in dispute. This may include, but is not limited to, 30 day goods, section 81.1 claims, leased goods, and goods held on a consignment basis.
  2. Furthermore, the inventory shall include:
    1. an accounting of all the articles of property in the possession of the debtor, with sufficient information to identify each item;
    2. a valuation of each item with a note explaining the means used to establish the value (however, where such a valuation is not included, by the person making the inventory, the trustee shall be responsible for ensuring that the valuation is completed immediately and added to the inventory after receiving the incomplete inventory);
    3. the name(s) of the person(s) who conducted the inventory count and the trustee responsible for the inventory;
    4. the date and time when the inventory was prepared;
    5. the location(s) of the assets;
    6. the details of damaged, deteriorated or perishable goods; and
    7. a description of control procedure(s) employed to ensure that all assets are accounted for.
  3. The person preparing the inventory shall initial or sign each inventory sheet. The same person shall also complete and attach the form in Appendix I.
  4. The debtor, or an officer of the debtor corporation, shall be given a copy of the inventory sheets and shall complete the written statement in Appendix II. The completed statement shall be attached to the inventory list. In the absence of such a statement the trustee shall sign and attach a document providing reasons for its absence.
  5. Where the trustee is relying on an inventory prepared by a third party, the trustee shall personally ensure that this Directive has been adhered to and shall sign Appendix I.

The Acting Superintendent of Bankruptcy
Marc Mayrand


Appendix I

Person Preparing the Inventory

I, of the firm of (if applicable)

(address) prepared the inventory (attached) of the debtor (corporation) named

and state that to the best of my knowledge and belief this final inventory listing represents the quantities, descriptions with/without (strike out inapplicable wording) valuations, of all property, goods and assets of the debtor (corporation) at the following locations as at , 19.

Locations: (list addresses or description of sites here)

Signature of person preparing the inventory

Signature of trustee

Date


Appendix II

Debtor's Statement re Inventory Listing

I, of (address) the debtor/bankrupt/officer or director of the debtor corporation, state that to the best of my knowledge and belief this final inventory listing (attached) correctly represents the quantities, descriptions (and valuation, if applicable) of all estate property, goods and assets as at , 19 , except for the following items:

(Give details of deficiencies or incorrect items in the inventory listing, if applicable.)

Signature of Debtor/Bankrupt/Officer or Director of debtor corporation

Date

Important notice:

The HTML version of this Directive is not the official version. In the event of an inconsistency between the HTML and PDF versions of this Directive, the PDF version prevails. Users are required to exercise due diligence with respect to the HTML version.

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