The priorities of some pension claims on bankruptcy and receivership changed as a result of amendments effective July 8, 2008 to the Bankruptcy and Insolvency Act R.S.C. (Canada) (the “BIA”).
Priority Before the Amendments
Canada, Employee Benefits & Pensions, Insolvency & Restructuring, Fasken, Wage, Bankruptcy, Debtor, Unsecured debt, Income tax, Liquidation, Unemployment benefits, Secured creditor, US Federal Government, Canada Pension Plan Act 1985, Bankruptcy and Insolvency Act 1985 (Canada)
The decision of the Ontario Court of Appeal earlier this year in Slater Steel* exposed 10 directors, officers and employees to possible personal liability of $20 million with no meaningful recourse against the insolvent Slater Steel or its assets. This is a reminder that failure to recognize and fulfill fiduciary obligations for a pension plan can expose you to substantial personal liability.
Canada, Ontario, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Fasken, Breach of contract, Fiduciary, Board of directors, Economy, Prejudice, Defined benefit pension plan, Actuary, Court of Appeal for Ontario