Directive No. 4R
Coming into force September 18, 2009

Delegation of Tasks

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Directive No. 4R

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(Supersedes Directive No. 4 issued on , on the same topic)

Interpretation

  1. In this Directive,
    • "Act" means the Bankruptcy and Insolvency Act;
    • "administrator" means an administrator of consumer proposals as defined in section 66.11 of the Act;
    • "OSB" means the Office of the Superintendent of Bankruptcy;
    • "Rules" means the Bankruptcy and Insolvency General Rules;
    • "trustee" means a trustee as defined in section 2 of the Act.

Authority and Purpose

  1. This Directive is issued pursuant to the authority of paragraph 5(4)(b) of the Act.
  2. The purpose of this Directive is to set out the circumstances under which trustees and administrators may delegate certain tasks in the administration of an estate to other individuals. It also lists those tasks that shall be performed by an individual trustee or an administrator.

Policy

  1. In delegating tasks, trustees or administrators remain responsible for ensuring that the administration is conducted in a professional and timely manner.
  2. Trustees and administrators are required to establish adequate controls in carrying out their statutory duties.

Delegation

  1. The following criteria shall be considered in determining which tasks may be delegated, and to which individual:
    1. the internal control system in the offices of trustees or administrators;
    2. the length of training and the accreditation of the individual; and
    3. the personal knowledge that trustees or administrators have of the individual's experience, capabilities and aptitudes relevant to the tasks in question.
  2. The following tasks shall be performed by individual trustees, or administrators where applicable, and cannot be delegated:
    1. accepting an appointment;
    2. chairing meetings of creditors for
      1. a Division I proposal;
      2. an ordinary administration bankruptcy; or
      3. a summary administration bankruptcy and Division II proposal where a proven creditor, or the Official Receiver, requests the trustee to chair the meeting;
    3. chairing a meeting of inspectors upon the request of an inspector;
    4. reviewing and signing all cheques drawn on estate accounts;
    5. ensuring that the internal control system is adequate and operational;
    6. reviewing and signing the forms and documents listed in Schedule A; and
    7. other tasks specified by the Act, the Rules or Directives.
  3. Special arrangements may be made with the designated senior bankruptcy analyst regarding the application of this Directive to accommodate unusual circumstances.

Coming into Force

  1. This Directive comes into force on September 18, 2009.

Enquiries

  1. For any questions pertaining to this Directive, please contact your local OSB office.

Apendix A

Apendix A - Forms
Forms BIA Sections / Rules Form Title
7 Subsection 36(1); Rule 56 Application of Former Trustee to Pass Accounts
9 Rule 56 Notice of Former Trustee's Application to Pass Accounts
10 Rule 61 Application of Trustee for Discharge
12, 13, 14

Sections 152 and 155; Rules 62 and 98 Statement of Receipts and Disbursements
16 Rules 65(1)(c)(iii) and 101(1)(d) Certificate of Compliance and Deemed Discharge of Trustee or Administrator
29 Paragraphs 50(6)(b) and 50.4(2)(b) Trustee's Report on Cash-flow Statement
34 Paragraph 50.4(8)(b) Report of Trustee on Non-filing of Cash-flow Statement or Proposal
38 Paragraph 57(b) Report of Trustee on Refusal by Creditors to Approve Proposal
40 Section 59(1) and paragraph 58(d) Report of Trustee on Proposal
43.1 Subsection 63(6) Report of Trustee on Annulment of Proposal
46 Sections 65.3 and 66.38 Certificate of Full Performance of Proposal
48 Section 66.14 Report of Administrator on Consumer Proposal
51 Paragraph 66.23(c) Report of Administrator on Consumer Proposal and Conduct of Consumer Debtor
53 Section 66.3(4) Notice to Creditors and Report to Official Receiver on Annulment of Consumer Proposal of a Consumer Debtor who was not a Bankrupt
54 Paragraph 66.3(5)(c) Report to Official Receiver on Annulment of the Consumer Proposal of a Consumer Debtor who was a Bankrupt
54.2 Paragraph 66.31(4)(c) Report to Official Receiver on Deemed Annulment of Consumer Proposal of a Consumer Debtor who was a Bankupt
77 Subsection 135(3) Notice of Disallowance of Claim, Right to Priority or Security or Notice of Valuation of Claim
82 Subsection 170(1) Report of Trustee on Bankrupt's Application for Discharge
83 Subsections 171(1) and (2) Report of Trustee under Subsections 171(1) and (2)
84 Subsection 168.1(6) and Paragraph 170.1(4)(a) Certificate of Discharge
Apendix A - Documents
Documents (BIA sections) Description of Document
Subsection 34(2) Notice of Hearing of Trustee's Report to Court after Three Years
Subsection 50(5) Report on the Financial Situation of the Debtor and the Cause of the Debtor's Financial Difficulties
Subparagraph 50(10)(a)(i) Report on the State of the Insolvent Person's Business and Financial Affairs when any Material Adverse Change
Paragraph 50(10)(b) Report on the State of the Insolvent Person's Business and Financial Affairs
Paragraph 50.4(1)(b) Consent by the Trustee to Act as Trustee under the Proposal
Subparagraph 50.4(7)(b) (i) and (ii) Report to the Superintendent and to the Court on the State of the Insolvent Person's Business and Financial Affairs when any Material Adverse Change
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