Section 14.03 — Bankruptcy and Insolvency Act: Conservatory measures

Subject to subsection (2), the Superintendent may, for the protection of an estate, the rights of the creditors or the debtor, direct a person to deal with property of the estate described in the direction in such manner as may be indicated in the direction, including the continuation of the administration of the estate; direct any person to take such steps as the Superintendent considers necessary to preserve the books, records, data, including data in electronic form, and documents of the estate; direct a bank or other depository not to pay out funds held to the credit of the estate except in accordance with the direction; and direct the official receiver not to appoint the trustee in respect of any new estates until a decision is made under subsection 13.2(5) or 14.01(1). The circumstances in which the Superintendent is authorized to exercise the powers set out in subsection (1) are where an estate is left without a trustee by the death, removal or incapacity of the trustee; the Superintendent makes or causes to be made any inquiry or investigation under paragraph 5(3)(e); the Superintendent exercises any of the powers set out in section 14.01; the fees referred to in subsection 13.2(2) have not been paid in respect of the trustee’s licence; a trustee becomes insolvent; a trustee has been found guilty of an indictable offence that, in the Superintendent’s opinion, is of a character that would impair the trustee’s capacity to perform the trustee’s fiduciary duties, or has failed to comply with any of the conditions or limitations to which the trustee’s licence is subject; or a circumstance referred to in paragraph 13.2(5)(c) or (d) exists and the Superintendent is considering cancelling the licence under subsection 13.2(5). A direction given pursuant to subsection (1) shall state the statutory authority pursuant to which the direction is given; is binding on the person to whom it is given; and is, in favour of the person to whom it is given, conclusive proof of the facts set out therein. A person who complies with a direction given pursuant to subsection (1) is not liable for any act done by the person only to comply with the direction.