Winding-up and Restructuring Act

Marginal note:When company deemed insolvent

3 A company is deemed insolvent

• (a) if it is unable to pay its debts as they become due;

• (b) if it calls a meeting of its creditors for the purpose of compounding with them;

• (c) if it exhibits a statement showing its inability to meet its liabilities;

• (d) if it has otherwise acknowledged its insolvency;

• (e) if it assigns, removes or disposes of, or attempts or is about to assign, remove or dispose of, any of its property, with intent to defraud, defeat or delay its creditors, or any of them;

• (f) if, with the intent referred to in paragraph (e), it has procured its money, goods, chattels, land or property to be seized, levied on or taken, under or by any process of execution;

• (g) if it has made any general conveyance or assignment of its property for the benefit of its creditors, or if, being unable to meet its liabilities in full, it makes any sale or conveyance of the whole or the main part of its stock in trade or assets without the consent of its creditors or without satisfying their claims;

• (h) if it permits any execution issued against it, under which any of its goods, chattels, land or property are seized, levied on or taken in execution, to remain unsatisfied until within four days of the time fixed by the sheriff or other officer for the sale thereof, or for fifteen days after the seizure;

• (i) if, in the case of a company that is a federal member institution, within the meaning assigned to that expression by the Canada Deposit Insurance Corporation Act, the shares and subordinated debt of which — and, if the federal member institution is a federal credit union, the membership shares of which — have been vested in the Canada Deposit Insurance Corporation by order of the Governor in Council under paragraph 39.13(1)(a) of the Canada Deposit Insurance Corporation Act, a transaction or series of transactions referred to in subsection 39.2(1) of that Act is not, in the opinion of the Corporation, substantially completed on or before the date that is not later than

  • (i) 60 days after the making of the order vesting the shares and subordinated debt of the federal member institution in the Corporation, or

  • (ii) the expiration of any extension of that period;

• (j) if, in the case of a company that is a federal member institution, within the meaning assigned to that expression by the Canada Deposit Insurance Corporation Act, in respect of which the Canada Deposit Insurance Corporation has been appointed as receiver by order of the Governor in Council under paragraph 39.13(1)(b) of that Act, a transaction or series of transactions referred to in subsection 39.2(2) of that Act is not, in the opinion of the Corporation, substantially completed on or before the date that is not later than

  • (i) 60 days after the making of the order appointing the Corporation as receiver, or

  • (ii) the expiration of any extension of that period; or

• (k) if, in the case of a company that is a federal member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act, in respect of which the Canada Deposit Insurance Corporation has been appointed as receiver, a transfer of part of the business of the federal member institution to a bridge institution has been substantially completed.