The primary federal legislation governing corporate insolvency in Canada is the Bankruptcy and Insolvency Act (BIA), and the Companies’ Creditors Arrangements Act (CCAA). However, because Canada is a federation, both federal and provincial statutes may be relevant to corporate insolvencies in Canada.
Under the Constitution Act, provincial governments have jurisdiction over property and civil rights within a province. As such, they have enacted statutes dealing with fraudulent conveyances and preferences, and the perfection of security interests in property. All of these statutes affect bankruptcy and insolvency in Canada, which is federally regulated.
More in this section:
- Arrangements under the Companies’ Creditors Arrangement Act
- Proceedings under the Bankruptcy and Insolvency Act