Conservatory Measures
What is a conservatory measure?
The Superintendent of Bankruptcy puts in place conservatory measures when a bankruptcy or insolvency estate needs protection. It might be in cases of Licensed Insolvency Trustee (LIT) malfeasance or if serious wrongdoing on the part of a LIT puts estate files at risk. Conservatory measures may also be put in place if a LIT becomes ill or dies without a valid succession agreement. Finally, conservatory measures may be put in place if a LIT, for whatever reason, has allowed the administration of his or her practice to become substandard.
CANADA
DIRECTION TO Royal Bank of Canada
3300 Highway 7, Suite 100, Concord, Ontario L4K 4M3
(October 20, 2017)
In the matter of:
Donna Marie Cairns and
Cooper & Company Ltd.
Directions for Conservatory Measures
(Section 14.03 of the Bankruptcy and Insolvency Act)
Whereas the Bankruptcy and Insolvency Act (the “Act”) provides the Superintendent of Bankruptcy (the “Superintendent”) with the general power to supervise the administration of all estates and matters to which the Act applies;
Whereas Donna Marie Cairns (the “Trustee”) is the holder of an individual licence as a licensed insolvency trustee;
Whereas Cooper & Company Ltd. is the holder of a corporate licence as a licensed insolvency trustee;
Whereas the Trustee is the sole licensed insolvency trustee practitioner of Cooper & Company Ltd.;
Whereas on October 20, 2017, Mr. Jack Steinman, Regional Director – Ontario, of the Office of the Superintendent of Bankruptcy (“OSB”), was made aware by a representative of an affiliate of the corporate firm, that the Trustee had made materially significant unauthorized withdrawals from estate trust funds, for which she is currently a fiduciary;
Whereas I believe on reasonable grounds that the estates require protection;
Whereas the Superintendent may, for the protection of an estate, exercise the powers set out in subsection 14.03(1) of the Act, in the circumstances referred to in subsection 14.03(2) of the Act;
Whereas the Superintendent has delegated to me, in accordance with subsection 14.01(2) of the Act, the powers of the Superintendent as specified at subsection 14.03(1) of the Act, in the circumstance referred to in subsection 14.03(2), a copy of which delegation is attached, along with copies of sections 14.01, 14.02 and 14.03 of the Act;
Whereas paragraph 14.03(2)(b) of the Act applies;
I, Jack Steinman, in my capacity as delegate for the Superintendent and pursuant to paragraphs 14.03(1)(b) and (c) of the Act, direct the Royal Bank of Canada, 3300 Highway 7, Suite 100, Concord, Ontario L4K 4M3 to:
- consider, upon receipt of the present directions, Ms. Stephanie Lee and Mr. Avi Koren, Senior Bankruptcy Analysts of the OSB, as the only authorized signatories as relates to any operations on the funds credited to the estates of bankruptcies and proposals administered by Donna Marie Cairns and Cooper & Company Ltd.;
- make no debit, payment or transfer of funds credited to, or which ought to have been credited to, the estates of bankruptcies and proposals administered by Donna Marie Cairns and Cooper & Company Ltd. without the countersignature of Ms. Stephanie Lee or Mr. Avi Koren;
- not pay out of these accounts: cheques, bills of exchange, bank drafts or other instruments, issued before the receipt of these directions which are presented for payment after the receipt of these directions without these cheques, bills of exchange, bank drafts or other instruments being signed by Ms. Stephanie Lee or Mr. Avi Koren;
- provide, as soon as possible, the list of trust bank accounts of Donna Marie Cairns and Cooper & Company Ltd. and submit all statement of accounts, accepted cheques and other documents or information having to do with the above-mentioned estate trust bank accounts, to Ms. Stephanie Lee or Mr. Avi Koren, Senior Bankruptcy Analysts of the OSB, at 151 Yonge Street, Toronto, Ontario M5C 2W7;
That these directions take effect immediately and will remain in effect until such time as I am satisfied that the estates no longer require protection;
That in accordance with subsection 14.03(3) of the Act, these directions bind the Royal Bank of Canada, who must comply with them;
That, pursuant to subsection 14.03(4) of the Act, a person who complies with this direction is not liable for any act done by that person only to comply with this direction.
Signed at the City of Toronto, Ontario, this 20th day of October 2017.
Jack Steinman
OSB Regional Director – Ontario