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.
In the matter of:
St-Georges, Hébert inc.
Directions for Conservatory Measures
(Section 14.03 of the Bankruptcy and Insolvency Act)
Whereas the Bankruptcy and Insolvency Act provides the Superintendent of Bankruptcy with the general power to supervise the administration of all estates and matters to which the Act applies;
Whereas the Superintendent of Bankruptcy may, in order to protect assets, exercise the powers set out in subsection 14.03(1) of the Act, under the circumstances anticipated in subsection 14.03(2) of the Act;
Whereas the Superintendent of Bankruptcy has delegated to the undersigned, in accordance with subsection 14.01(2) of the Act, in certain situations mentioned in subsection 14.03(2), the Superintendent's powers as specified at subsection 14.03 (1) of the Act, copies of which delegation are attached, along with copies of subsections 14.01(2) and 14.03(1) to (4) of the Act;
Whereas on June 20, 2003 the undersigned issued the following directions for conservatory measures to the Bank of Nova Scotia:
- to make no debit and/or payment and/or transfer on funds credited to the estates in account number 90191-00786-11 or account number 90191-002-0114618 under the administration of St-Georges, Hébert Inc., unless the cheques, debit notes, and deposit and/or transfer certificates are co-signed by Ms. JoAnne Laurendeau, Ms. Nicole Lachance or Mr. Gerry Barberio, in addition to Mr. Jean-Guy St-Georges;
- not to pay out of said estate accounts any bills of exchange, cheques, bank drafts, certificates of deposit, or other such instruments that may have been issued prior to receipt of these directions but are presented for payment after receipt of these directions, unless said cheques, bills of exchange or bank drafts are co-signed by one of these individuals, in addition to Mr. Jean-Guy St-Georges.
Whereas the undersigned received new documents regarding the bank accounts # 90191-00786-11 and # 90191-002-0114618 showing that there is no money of any estate in those accounts;
I, the undersigned, Michel Leduc, in my capacity as Senior Analyst, Professional Conduct, remove said directions for conservatory measures for the estate accounts # 90191-00786-11 and # 90191-002-0114618.
In accordance with subsection 14.03(3) of the Act, these directions bind their addressees, who must comply with them.
In accordance with subsection 14.03(4) of the Act, a person who complies with these directions is not liable for any act done by the person only to comply with them.
Signed, in the City of Montréal, Quebec
August 16, 2006
Senior Analyst, Professional Conduct