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
In the matter of:
John Brock Hobbs
Hobbs and Company Inc.
Modification of 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 John Brock Hobbs is the holder of an individual license as trustee in bankruptcy;
Whereas Hobbs and Company Inc. is the holder of a corporate trustee license;
Whereas an investigation made by the Superintendent pursuant to section 5(3)(e) of the Act revealed that John Brock Hobbs had an unacceptably high number of estate files under administration for more than three years as well as banking deficiencies in the administration of his estates;
Whereas Conservatory Measures under Section 14.03 of the Act (which are attached) were issued on July 20, 2004, as a result of the facts and reasons outlined therein;
Whereas John Brock Hobbs has closed 55 files in the last 7 months, 54 of which were aged over 36 months and has demonstrated improvement with respect to banking procedures;
Whereas no further problems or issues have been identified since the issuance of the Conservatory Measures, however, I believe on reasonable grounds that the estates continue to 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 section 14.03(2) of the Act;
Whereas the Superintendent has delegated to me, in accordance with section 14.01(2) of the Act, the powers of the Superintendent as specified at section 14.03(1) of the Act, in the circumstance referred to in section 14.03(2)(b);
I, Karl Bueckert, in my capacity as delegate for the Superintendent, direct that the Conservatory Measures issued by me on July 20, 2004, be modified as follows:
That, pursuant to sections 14.03(1)(b) and (d) of the Act, the Official Receiver appoint John Brock Hobbs and/or Hobbs and Company Inc. to three new estates for each positive Letter of Comment issued by the Superintendent on or after March 1, 2005, until a decision is made under subsection 13.2(5) or 14.01(1), or until such time as I am satisfied that the estates no longer require protection;
That, pursuant to subsection 14.03(3) of the Act, this direction is binding on the Official Receiver, and all other addressees, who must comply with this direction;
That, the banking direction contained in the Conservatory Measures dated July 20, 2004, continues to be in full force and effect until a decision is made under subsection 13.2(5) or 14.01(1), or until such time as I am satisfied that the estates no longer require protection;
That, pursuant to section 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 Saskatoon, Saskatchewan
Karl Bueckert
Senior Bankruptcy Analyst
TO: John Brock Hobbs
Hobbs and Company Inc.
217–2349 Fairview Street
Burlington, Ontario
L7R 2E3
And TO: Royal Bank of Canada
Airport & Stockdale Branch
925 Stockdale Road
Main Floor
North Bay, Ontario
P1B 9N5
And TO: CIBC
4821 Yonge Street
North York, Ontario
M2N 5X2
And TO: Official Receiver
Office of the Superintendent of Bankruptcy
55 Bay Street North, 9th Floor
Hamilton, Ontario
L8R 3P7