Bankruptcy and Insolvency General Rules (C.R.C., c. 368)

21 In determining the amount of costs to be allowed, the taxing officer shall determine whether

• (a) the legal services have been duly rendered;

• (b) the charges are reasonable and, if applicable, are in accordance with the tariff;

• (c) the legal services rendered are accounted for, and are not services that should have been rendered by the trustee; and

• (d) the legal services have been authorized and approved in accordance with the Act, if the Act so requires.

22 When a bill of costs has been taxed, the taxing officer shall make a statement to that effect on the bill and shall sign that statement, and a bill of costs so signed has the same effect as a judgment of the court and may be enforced in the same manner as a judgment.

23 The court may, on ex parte application by a trustee, order a barrister or solicitor or, in the Province of Quebec, an advocate to submit a bill of costs to the trustee, or to bring the bill of costs into court to be taxed, and, if the barrister, solicitor or advocate fails to comply, the court may, on ex parte application by the trustee, order that the trustee distribute the proceeds of the estate that the trustee possesses without regard to the barrister, solicitor or advocate’s bill of costs.

• 24 (1) The barrister or solicitor or, in the Province of Quebec, the advocate shall give to the trustee, to any other person who is liable for payment of the bill of costs and, on request, to the Division Office, a notice of the time and place of the taxation, at least 10 days before the day set for the taxation.

• (2) A certified copy of the bill of costs to be presented for taxation must be attached to the notice referred to in subsection (1).

• 25 (1) A decision of a taxing officer on the taxation of a bill of costs may be appealed to the court if a notice stating the grounds of appeal is given to the opposite party and the Division Office within 10 days after the day of the decision.

• (2) The judge who hears the appeal may retax the bill of costs as if it were being taxed for the first time.

26 [Repealed, SOR/2009-218, s. 4]

Fees of Court Officers

27 If the amount of the fees payable to a court officer is contested, the judge shall fix the amount.

28 Fees payable to a registrar under these Rules belong to Her Majesty in right of the province for which the registrar was appointed.

29 [Repealed, SOR/2005-284, s. 3]

Appeals from Decisions of the Registrar

• 30 (1) An appeal from an order or decision of the registrar must be made by motion to a judge.

• (2) A notice of motion or a motion, as the case may be, must be filed at the office of the registrar and served on the other party within 10 days after the day of the order or decision appealed from, or within such further time as the judge stipulates.

• (3) The notice of motion or the motion must set out the grounds of the appeal.

Appeal to Court of Appeal

• 31 (1) An appeal to a court of appeal referred to in subsection 183(2) of the Act must be made by filing a notice of appeal at the office of the registrar of the court appealed from, within 10 days after the day of the order or decision appealed from, or within such further time as a judge of the court of appeal stipulates.

• (2) If an appeal is brought under paragraph 193(e) of the Act, the notice of appeal must include the application for leave to appeal.

32 The registrar of the court appealed from shall transmit to the court of appeal the notice of appeal and the file.

Official Receiver

33 The official receiver may request instructions from the registrar or, if the official receiver is the registrar, from the judge, in case of doubt respecting any matter arising out of the Act, these Rules or a directive.

Code of Ethics for Trustees

34 Every trustee shall maintain the high standards of ethics that are central to the maintenance of public trust and confidence in the administration of the Act.

35 For the purposes of sections 39 to 52, professional engagement means any bankruptcy or insolvency matter in respect of which a trustee is appointed or designated to act in that capacity pursuant to the Act.

36 Trustees shall perform their duties in a timely manner and carry out their functions with competence, honesty, integrity and due care.

37 Trustees shall cooperate fully with representatives of the Superintendent in all matters arising out of the Act, these Rules or a directive.

38 Trustees shall not assist, advise or encourage any person to engage in any conduct that the trustees know, or ought to know, is illegal or dishonest, in respect of the bankruptcy and insolvency process.

39 Trustees shall be honest and impartial and shall provide to interested parties full and accurate information as required by the Act with respect to the professional engagements of the trustees.

40 Trustees shall not disclose confidential information to the public concerning any professional engagement, unless the disclosure is

• (a) required by law; or

• (b) authorized by the person to whom the confidential information relates.

41 Trustees shall not use any confidential information that is gathered in a professional capacity for their personal benefit or for the benefit of a third party.

42 Trustees shall not purchase, directly or indirectly,

• (a) property of any debtor for whom they are acting with respect to a professional engagement; or

• (b) property of any estates in respect of which the Act applies, for which they are not acting, unless the property is purchased

  • (i) at the same time as it is offered to the public,

  • (ii) at the same price as it is offered to the public, and

  • (iii) during the normal course of business of the bankrupt or debtor.

• 43 (1) Subject to subsection (2), if trustees have a responsibility to sell property in connection with a proposal or bankruptcy, they shall not sell the property, directly or indirectly,

  • (a) to their employees, agents or mandataries, or persons not dealing at arms’ length with the trustees;

  • (b) to other trustees or, knowingly, to employees of other trustees; or

  • (c) to related persons of the trustees or, knowingly, to related persons of the persons referred to in paragraph (a) or (b).

• (2) If trustees have a responsibility to act in accordance with subsection (1), they may sell property in connection with a proposal or bankruptcy to the persons set out in paragraph (1)(a), (b) or (c), if the property is offered for sale

  • (a) at the same time as it is offered to the public;

  • (b) at the same price as it is offered to the public; and

  • (c) during the normal course of business of the bankrupt or debtor.

44 Trustees who are acting with respect to any professional engagement shall avoid any influence, interest or relationship that impairs, or appears in the opinion of an informed person to impair, their professional judgment.

45 Trustees shall not sign any document, including a letter, report, statement, representation or financial statement that they know, or reasonably ought to know, is false or misleading, and shall not associate themselves with such a document in any way, including by adding a disclaimer of responsibility after their signature.

46 Trustees may transmit information that they have not verified, respecting the financial affairs of a bankrupt or debtor, if

• (a) the information is subject to a disclaimer of responsibility or an explanation of the origin of the information; and

• (b) the transmission of the information is not contrary to the Act, these Rules or any directive.

46.1 [Repealed, SOR/98-240, s. 1]

47 Trustees shall not engage in any business or occupation that would compromise their ability to perform any professional engagement or that would jeopardize their integrity, independence or competence.

48 Trustees who hold money or other property in trust shall

• (a) hold the money or property in accordance with the laws, regulations and terms applicable to the trust; and

• (b) administer the money or property with due care, subject to the laws, regulations and terms applicable to the trust.

49 Trustees shall not, directly or indirectly, pay to a third party a commission, compensation or other benefit in order to obtain a professional engagement or accept, directly or indirectly from a third party, a commission, compensation or other benefit for referring work relating to a professional engagement.

50 Trustees shall not obtain, solicit or conduct any engagement that would discredit their profession or jeopardize the integrity of the bankruptcy and insolvency process.

51 Trustees shall not, directly or indirectly, advertise in a manner that

• (a) they know, or should know, is false, misleading, materially incomplete or likely to induce error; or

• (b) unfavourably reflects on the reputation or competence of another trustee or on the integrity of the bankruptcy and insolvency process.

52 Trustees, in the course of their professional engagements, shall apply due care to ensure that the actions carried out by their employees, agents or mandataries or any persons hired by the trustees on a contract basis are carried out in accordance with the same professional standards that those trustees themselves are required to follow in relation to that professional engagement.