Insurance Companies Act (S.C. 1991, c. 47)

Marginal note:Dissolution instrument

• 570.08 (1) Unless a court has made an order in accordance with subsection 570.09(1), the Minister may, if satisfied that the society has complied with subsection 570.07(4) and that all the circumstances so warrant, issue letters patent dissolving the society.

• Marginal note:Society dissolved

  (2) A society in respect of which letters patent are issued under subsection (1) is dissolved and ceases to exist on the day stated in the letters patent.

Marginal note:Application for court supervision

• 570.09 (1) The Superintendent or any interested person may, at any time during the liquidation of a society, apply to a court for an order for the continuance of the voluntary liquidation under the supervision of the court in accordance with this section and sections 570.1 to 570.21. On that application, the court may so order and make any further order it thinks fit.

• Marginal note:Application to state reasons

  (2) An application under subsection (1) to a court to supervise a voluntary liquidation shall state the reasons, verified by an affidavit of the applicant, why the court should supervise the liquidation.

• Marginal note:Notice to Superintendent

  (3) Where a person, other than the Superintendent, makes an application under subsection (1), the person shall give the Superintendent notice of the application and the Superintendent may appear and be heard in person or by counsel at the hearing of the application.

Marginal note:Court supervision

• 570.1 (1) If a court makes an order under subsection 570.09(1), the liquidation of the society shall continue under the supervision of the court.

• Marginal note:Beginning of liquidation

  (2) The supervision of the liquidation of a society by the court under an order made under subsection 570.09(1) begins on the day the order is made.

Marginal note:Powers of court

570.11 In connection with the liquidation and dissolution of a society, if the court is satisfied that the society is able to pay or adequately provide for the discharge of all its obligations and to make satisfactory arrangements for the protection of its policyholders, the court may make any order it thinks fit, including

• (a) an order to liquidate;

• (b) an order appointing a liquidator, with or without security, fixing a liquidator’s remuneration and replacing a liquidator;

• (c) an order appointing inspectors or referees, specifying their powers, fixing their remuneration and replacing inspectors or referees;

• (d) an order determining the notice to be given to any interested person, or dispensing with notice to any person;

• (e) an order determining the validity of any claims made against the society;

• (f) an order, at any stage of the proceedings, restraining the directors and officers of the society from

  • (i) exercising any of their powers, or

  • (ii) collecting or receiving any debt or other property of the society, and from paying out or transferring any property of the society, except as permitted by the court;

• (g) an order determining and enforcing the duty or liability of any present or former director, officer or member

  • (i) to the society, or

  • (ii) for an obligation of the society;

• (h) an order approving the payment, satisfaction or compromise of claims against the society and the retention of assets for that purpose, and determining the adequacy of provisions for the payment, discharge or transfer of any obligation of the society, whether liquidated, unliquidated, future or contingent;

• (i) with the concurrence of the Superintendent, an order providing for the disposal or destruction of the documents, records or registers of the society;

• (j) on the application of a creditor, an inspector or the liquidator, an order giving directions on any matter arising in the liquidation;

• (k) after notice has been given to all interested parties, an order relieving the liquidator from any omission or default on such terms as the court thinks fit and confirming any act of the liquidator;

• (l) subject to sections 570.18 to 570.2, an order approving any proposed, interim or final distribution to members, if any, or to incorporators, in money or in kind;

• (m) an order disposing of any property belonging to creditors, members and incorporators who cannot be found;

• (n) on the application of any director, officer, member, incorporator or creditor or the liquidator,

  • (i) an order staying the liquidation proceedings on such terms and conditions as the court thinks fit,

  • (ii) an order continuing or discontinuing the liquidation proceedings, or

  • (iii) an order to the liquidator to restore to the society all of its remaining property; and

• (o) after the liquidator has rendered the liquidator’s final account to the court, an order directing the society to apply to the Minister for letters patent dissolving the society.