Companies’ Creditors Arrangement Act

Marginal note:Court to appoint monitor

• 11.7 (1) When an order is made in respect of a company by the court under section 11, the court shall at the same time appoint a person, in this section and in section 11.8 referred to as "the monitor", to monitor the business and financial affairs of the company while the order remains in effect.

• Marginal note:Auditor may be monitor

  (2) Except as may be otherwise directed by the court, the auditor of the company may be appointed as the monitor.

• Marginal note:Functions of monitor

  (3) The monitor shall

  • (a) for the purposes of monitoring the company’s business and financial affairs, have access to and examine the company’s property, including the premises, books, records, data, including data in electronic form, and other financial documents of the company to the extent necessary to adequately assess the company’s business and financial affairs;

  • (b) file a report with the court on the state of the company’s business and financial affairs, containing prescribed information,

    • (i) forthwith after ascertaining any material adverse change in the company’s projected cash-flow or financial circumstances,

    • (ii) at least seven days before any meeting of creditors under section 4 or 5, or

    • (iii) at such other times as the court may order;

  • (c) advise the creditors of the filing of the report referred to in paragraph (b) in any notice of a meeting of creditors referred to in section 4 or 5; and

  • (d) carry out such other functions in relation to the company as the court may direct.

• Marginal note:Monitor not liable

  (4) Where the monitor acts in good faith and takes reasonable care in preparing the report referred to in paragraph (3)(b), the monitor is not liable for loss or damage to any person resulting from that person’s reliance on the report.

• Marginal note:Assistance to be provided

  (5) The debtor company shall

  • (a) provide such assistance to the monitor as is necessary to enable the monitor to adequately carry out the monitor’s functions; and

  • (b) perform such duties set out in section 158 of the Bankruptcy and Insolvency Act as are appropriate and applicable in the circumstances.