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Minutes of Proceedings

44th Parliament, 1st Session
Meeting 65
Monday, October 31, 2022, 3:37 p.m. to 4:38 p.m.
Televised
Presiding
Peter Fonseca, Chair (Liberal)

• Claude DeBellefeuille (Bloc Québécois)
• Marilyn Gladu (Conservative)
House of Commons
• Philippe Méla, Legislative Clerk
• Marie-Hélène Sauvé, Legislative Clerk
 
Library of Parliament
• Michaël Lambert-Racine, Analyst
• Joëlle Malo, Analyst
Department of Finance
• Kathleen Wrye, Director, Pensions Policy, Financial Sector Policy Branch
• Neil Mackinnon, Senior Advisor, Financial Sector Policy Branch
Department of Industry
• Paul Morrison, Manager, Corporate, Insolvency and Competition Directorate
• Martin Simard, Acting Director General, Marketplace Framework Policy Branch
Pursuant to the order of reference of Wednesday, June 22, 2022, the committee resumed consideration of Bill C-228, An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985.

The witnesses answered questions.

The committee commenced its clause-by-clause study of the Bill.

Pursuant to Standing Order 75(1), consideration of Clause 1 (short title) is postponed.

By unanimous consent, the Chair calls new Clause 4.1.

Daniel Blaikie moved, — That Bill C-228 be amended by adding after line 16 on page 3 the following new clause:

“4.1 Subsection 136(1) of the Act is amended by adding the following after paragraph (d):

(d.001) the amount of any termination or severance pay owed to a clerk, servant, travelling salesperson, labourer or worker by a bankrupt under an Act of Parliament or of the legislature of a province or under a collective bargaining agreement less any amount previously paid by the trustee for that termination or severance pay;”

Debate arose thereon.

The Chair ruled the proposed amendment inadmissible because it was beyond the scope of the Bill, as provided on page 770 of House of Commons Procedure and Practice, Third Edition.

Whereupon, Daniel Blaikie appealed the decision of the Chair.

The question: "Shall the decision of the Chair be sustained?" was put and the decision was overturned on the following recorded division:

YEAS: Yvan Baker, Sophie Chatel, Julie Dzerowicz, Andy Fillmore, Heath MacDonald — 5;

NAYS: Daniel Blaikie, Adam Chambers, Jasraj Singh Hallan, Philip Lawrence, Marty Morantz, Gabriel Ste-Marie — 6.

After debate, the question was put on the amendment of Daniel Blaikie and it was agreed to on division.

Andy Fillmore moved, — That Bill C-228 be amended by adding after line 16 on page 3 the following new clause:

4.1 Subsection 136(1) of the Act is amended by adding the following after paragraph (d):

(d.001) in the case of a bankrupt employer who participated or participates in a prescribed pension plan for the benefit of the bankrupt’s employees, the following amounts that are unpaid, on the date of bankruptcy, to the fund established for the purpose of the plan:

(i) in the case of any plan for which, if the whole of the plan is terminated, the employer is not subject to subsection 29(6.1) of the Pension Benefits Standards Act, 1985 or to any provision of provincial legislation that has a purpose similar to that subsection, an amount equal to the sum of all amounts — other than the amounts referred to in paragraph 81.5(1)(a) and either paragraph 81.5(1)(b) or (c), as the case may be — that were required under the federal or provincial legislation regulating the plan to be paid by the employer to the fund, and

(ii) in the case of any other plan,

(A) if the whole of the plan was terminated before the date of bankruptcy, an amount equal to the sum of all amounts — other than the amounts referred to in paragraph 81.5(1)(a) and either paragraph 81.5(1)(b) or (c), as the case may be — calculated as at that date, that were or would be required, under subsections 29(6) and (6.1) of the Pension Benefits Standards Act, 1985 or any provision of provincial legislation regulating the plan that has a purpose similar to those subsections, to be paid by the employer to the fund to ensure that any obligations of the plan with respect to pension benefits, as determined on the date of termination, are satisfied, and

(B) if the whole of the plan was not terminated before the date of bankruptcy, an amount equal to the sum of all amounts — other than the amounts referred to in paragraph 81.5(1)(a) and either paragraph 81.5(1)(b) or (c), as the case may be — calculated as at that date, that would be required, under subsections 29(6) and (6.1) of the Pension Benefits Standards Act, 1985 or any provision of provincial legislation regulating the plan that has a purpose similar to those subsections, to be paid by the employer to the fund, if the plan had been terminated on the date of bankruptcy, to ensure that any obligations of the plan with respect to pension benefits, as determined on the date of bankruptcy, are satisfied;

Debate arose thereon.

The question was put on the amendment of Andy Fillmore and it was negatived on the following recorded division:

YEAS: Yvan Baker, Sophie Chatel, Julie Dzerowicz, Andy Fillmore, Heath MacDonald — 5;

NAYS: Daniel Blaikie, Adam Chambers, Jasraj Singh Hallan, Philip Lawrence, Marty Morantz, Gabriel Ste-Marie — 6.

On Clause 2,

Andy Fillmore moved, — That Bill C-228, in Clause 2, be amended by replacing line 5 on page 1 to line 11 on page 2 with the following:

2 Subsection 60(1.5) of the Bankruptcy and Insolvency Act is amended by striking out "and" at the end of paragraph (a) and by replacing paragraph (b) with the following:

(a.1) the proposal provides for payment to the fund established for the purpose of the pension plan of amounts that the fund would be qualified to receive under paragraph 136(1)(d.001) if the employer had become bankrupt on the date of the filing of the notice of intention or of the proposal, if no notice of intention was filed; and

(b) the court is satisfied that the employer can and will make the payments as required under paragraphs (a) and (a.1).

Debate arose thereon.

The question was put on the amendment of Andy Fillmore and it was negatived on the following recorded division:

YEAS: Yvan Baker, Sophie Chatel, Julie Dzerowicz, Andy Fillmore, Heath MacDonald — 5;

NAYS: Daniel Blaikie, Adam Chambers, Jasraj Singh Hallan, Philip Lawrence, Marty Morantz, Gabriel Ste-Marie — 6.

Clause 2 carried on division.

On new Clause 2.1,

Andy Fillmore moved, — That Bill C-228 be amended by adding after line 11 on page 2 the following new clause:

2.1 Subsection 65.13(8) of the Act is replaced by the following:

(8) The court may grant the authorization only if the court is satisfied that the insolvent person can and will make the payments that would have been required under paragraphs 60(1.3)(a) and (1.5)(a) and (a.1) if the court had approved the proposal.

Debate arose thereon.

The question was put on the amendment of Andy Fillmore and it was negatived.

Clause 3 carried.

Clause 4 carried.

On Clause 5,

Andy Fillmore moved, — That Bill C-228, in Clause 5, be amended by replacing line 17 on page 3 to line 7 on page 4 with the following:

5 Subsection 6(6) of the Companies’ Creditors Arrangement Act is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following:

(a.1) the compromise or arrangement provides for payment to the fund established for the purpose of the pension plan of amounts that are unpaid to that fund and that it would have been qualified to receive under paragraph 136(1)(d.001) of the Bankruptcy and Insolvency Act if the company had become bankrupt on the day on which proceedings commenced under this Act; and

(b) the court is satisfied that the company can and will make the payments as required under paragraphs (a) and (a.1).

Debate arose thereon.

After debate, the question was put on the amendment of Andy Fillmore and it was negatived.

Clause 5 carried on division.

On new Clause 5.1,

Andy Fillmore moved, — That Bill C-228 be amended by adding after line 7 on page 4 the following new clause:

5.1 Subsection 36(7) of the Act is replaced by the following:

(7) The court may grant the authorization only if the court is satisfied that the company can and will make the payments that would have been required under paragraphs 6(5)(a) and (6)(a) and (a.1) if the court had sanctioned the compromise or arrangement.

Debate arose thereon.

The question was put on the amendment of Andy Fillmore and it was negatived.

Clause 6 was negatived.

Clause 7 was negatived.

Clause 8 carried on division.

On Clause 9,

Andy Fillmore moved, — That Bill C-228, in Clause 9, be amended by replacing lines 15 to 28 on page 5 with the following:

9 (1) An amendment to the Bankruptcy and Insolvency Act that is enacted by section 2, 2.1 or 4.1 applies only to a person who, on or after the day on which the amendment comes into force, is described in one of the following paragraphs:

(a) the person becomes bankrupt;

(b) the person files a notice of intention;

(c) the person files a proposal without having filed a notice of intention;

(d) a proposal is made in respect of the person without the person having filed a notice of intention;

(e) an interim receiver is appointed in respect of the person’s property and all or part of the person’s property comes into the possession or under the control of the interim receiver; or

(f) all or part of the person’s property comes into the possession or under the control of a receiver.

(2) An amendment to the Companies’ Creditors Arrangement Act that is enacted by section 5 or 5.1 applies only to a debtor company in respect of whom proceedings commence under that Act on or after the day on which the amendment comes into force.

Debate arose thereon.

At 4:25 p.m., the sitting was suspended.

At 4:29 p.m., the sitting resumed.

By unanimous consent, the amendment was withdrawn.

Philip Lawrence moved, — That Bill C-228, in Clause 9, be amended

(a) by replacing line 20 on page 5 with the following:

“the third anniversary of the day on which this Act”

(b) by replacing line 26 on page 5 with the following:

“benefit of its employees until the third anniver-”

Debate arose thereon.

By unanimous consent, on motion of Philip Lawrence, it was agreed, — That the amendment be amended by replacing the word “third” by the word “fourth” in paragraph (a) and (b).

The question was put on the amendment of Philip Lawrence, as amended, and it was agreed to.

Clause 9, as amended, carried on division.

Clause 1, Short Title, carried.

The Title carried.

The Bill, as amended, was adopted on the following recorded division:

YEAS: Yvan Baker, Daniel Blaikie, Adam Chambers, Sophie Chatel, Julie Dzerowicz, Andy Fillmore, Jasraj Singh Hallan, Philip Lawrence, Heath MacDonald, Marty Morantz, Gabriel Ste-Marie — 11;

NAYS: — 0.

ORDERED, — That the Chair report the Bill, as amended, to the House.

ORDERED, — That Bill C-228, as amended, be reprinted for the use of the House of Commons at report stage.

At 4:38 p.m., the committee adjourned to the call of the Chair.



Alexandre Roger,
Carine Grand-Jean
Clerks of the committee