ti ~..

- ' ''^.~ - ' C?tt~ Cf 4E~e Ob}eGfiYe.S, ~# sn Bff~Ct~t iv~BYlCyt Acid bandy 8yst~ril lS #tt~t h ~~cAutg$9S both

• ~; ~~::~~ , ; . ~ - prematisi~e ~iquidatlon end de#erred t~quE n.~ Rremafura . Hquid~tion ~sisss beeause aver- ~ ' :.„_ ~ - ~ • .

~:S1K• ~' ,j•,_ • • • ~ ~ •` •KWYMi' by ~t~~ arKi officers Leads tc a# bankruptcy {~r~matura~y. or creditors move to .

~ ~`~ •~~~ ~ ~ .". ~ .~nfar~ce thg~ cta~ns on ate or ~c~bstant~y at! of.tfte assess w~#toui a. for detemrfiaat~on of

r ~i ~s'. -

y~~t;'' .. • •' WW~'t'tB~Br 1f'1@~8 • ~S ~~~R~ COC1t~tT1 V8~U6 X7'3 ~Ft~ $i'i~@~t~$s9. ~`[TBl~ {!C~l.SZ IS Wfl@~ ~T$GLOfS:~:t ,, , 8_ i. .. __.

. 4? .~ ~"~~~~ : ~ : ared~ oars ~ ham eft acted to a timely m~~r. to cleat. ~w~ith the firm'-s financial distress.

_-~r 2 ~:'`' ~ ~ . . ~ l : s~e~fri~tiy: ~o ate Emd~r trie ~~CCG,~ ar vczder the ~pr~~~s~ or ba~knrptcy~~rovisiotss of the 81A en a

~;- ' ~" ;~ ~ ~ = ~~= ' ta~r~ety,'i~hner t~~e ttiere~ h~~ heert fi~tte; d~etian off . that wo~Ed harmr ~ ~9 _ ~ ~'f.'

~~o:` .•:~' c~ac~or~'' ~. A nQ ~d~at~ ~ ~K es monitors c.~n argcaaT~ty tsY In naducEn~ both .

~;~ ~'~ ~ .`-I _ , g .~rertiafisre;and~ot~fem~d ii~dat~ons by e~rmoura~~ig Fhe debtors directors and.of~cers_ty ftte in a

L'~` ~~ ~ ~' ~ ' ' ~ • 1~~y rn er and dete~e wh es~ ptab_~;,.; • Y~ ether tftere i~ ~a v~abl~ basin plan~that may be ~cca (e to

~`~ , Y~ Y~•. ..~ _' ' .cr~ditors~on.~ g4tng forward bads. In Ntcfvr~n Equlpmertf,~the court #oimd~i~at t~~is was a reason'fit ~~y

`~a.t• ` ~A~~!~~• • .

~~`'~ F ~~r f' ~~. T~~~' ~.fOf,~~Ol+1~I1'~ aLt.~bP ~ SC3~ X18 ?YICB[t~'.~~~~• for• '~ ~ " ",may ~,. ~ •,-- - -

' };.;::~~;f-',, :. . - . Arxfrew Kit Vii. Waet ~ Rostom hive Bugg d that the r'a!e ar~d funmoons oaf a monitor were~"t {~{ {,~ • _.:. .. f icy ~s bets ~er~# from use t~ ~hv~te~ :a~td:thBt.Pasli~ment did 'tai vier ate. rotes

;~.~..~~~;v:=z~= : _ ..r _ '~~. .as~a Corr t#at.~ Thetii t#~atthe issue is~rr~t?~ one ~f:peic~~#ion~a~aut the~~tppea~argc+e of .

~pJ. '~.~ ~`. ~ . ' ,-Y fa~v~iess~ and ~ fir~a9i3t~ in' ~.t~°te• restructuring . pr~sss:_~ther :~F+~n an ~ tssu~ of substa~rice ~~ They .

. gt, ~ ~~,a ~. - ..o rve=fhat~v~te fie marti~Lo~ 1n the Aayat t~k~ ar~d,Canada~ 300fl,~cas~~ #iced ma#eri~~ adverse

ri'', ;, _`~ ;; 5.' N' ' , j ~= . •t~7~1'1CJ9 re#Ct~B~ t~QC~i ~tSB mety orb ~ It~er~f ~nnd F~ost~n suggest that ir~cr+~asingty~ .

• '~ .Y:~: ~ .. t~s motittw'is~ taking bn ttte~ rote .of "~up~r-~vrt~r*,. pe~o~[nirtg a wfYole~new sainnge~ of functions*' . .

;~, . ~:~': .: ~ . . , ~ _ ~ ~~~ • gfie mor~r trey ad~riise~• ~rr~ana~rrte~tt an. ht~w to a~u~t to the r~zsiructuring

-=;:~; ~ .: _ ' ~ ' ~ . ~ proms and deaf w~thh tie ~v~rfous: st~ket~ld~er pups' at the same .#inie 4hgt the

j • ;;;~~ ... . ' y:: •, • - moc~##sar i$ man ng c~p~ar~ca by the deb#~'~~#t~ the various. ~ tions cor~#ained • .r..4 ~ -,' " ,~ .. ~ • . ' ~ • . to ti18 ~titial ardor, ~ .. ~ ~

- .. _ . . . .

,. • . ~ ~ -

. - .' ~ ~ ~,satia,i s~e~a. a~ 4s at ch~gpcer 2. .. - ~.

'_ ' : f~ ~icl~rrarz E'qu~'P?rbe►t~ sirprn~ note ~G at p ~. ?3~ ~3 ~#4. - ~ ' . .. • _ ~ Andrew Keat a~B Ws~l Rostam. ~Y`~ Auditcar $s Ma~aitur in CCAA ~i~a~actiangs: What is the Uebat~?".

. - in r~n~rsrf .Rtviery o, f 'htsatve rcy di~w tTm'antao: Cox' II. ~tK}4) at 197=? 10, citing Canada. Pc~rliametu,. ~ . °`P~ooe~ngs of the Staging 5esaate Casrsi~fu~ vn ~aza~amg.'I'r~ aad.Co~ 'Issue I+Io. I7. Fch~ary

t x.199?.. ~ ~~~

-- ~ $s i~ nett sear is whir th~v are rsa~ they are generally not r~equiretZ. or wfzcther tic anchors ~ .- _ i a px+ob~em tbxt aecds Lo b~ d.

'~

.. ;~ the m~n€'tc~r increasin~~r ~s ~t~ t~tots firxa~tda( ~vtsor, Par~~artY to pct ". . _ . ~ _. ~ ~ ~ ... of sm~lt~or enld-sued ~catra~anles ~t~vr~er to r~aa~ze s~bs~anif~ cost ~av~ngs; ~ ~ .

the rRt~toi' cen fac~itate ~oonstrts~ve ~ego#tattar4s. n the.• debtor end. creditors

.. with reset to the grins of the ~csr~ng► partt~~r where cr,~c#tors do, not have ~ ,

. . ~ ~ ; ~- . fin some cases. the . ~ morrita~ ~ his - ~fiec~e~r r~~#aced .the : ~ti~' ;aid ~~nior. . ~ .~ . ~ man~gern'~t arid~ has ~~s~ai€~i •con~rat. of .tl~ .r+epr~an'Ratiwi process ~ usu~py ~s a `_ .. .,,.

. ~ . -: ~ ~ r~esu~ oi` ~ t~s'of corrfid~rtoe ft; en#: ,Rrq examp#e is.the .Floy~! Qak~case: ~ _ ~ ,. . . ~ . ~ to a nur~ib~r of ,the mom hss either e~r~essty~ or:~~np~iecfty: been sp~iap~ted _

: : ~ - a~ a r+ecesver -to ntn s~ s~t~ pry for ail+ar #or;a ~ubst~nti~E pert, of tie b~sir~e~s or

. ~ Kent and f#ostom ~ obs~r~e that wh~e •the ~E ii'iiy in• ~e rola ~ls.-~ •~os~iva-.~eveiop?me:lt;.tt~e-~~

. . . • . . c~ngt view that i# is fnsp~rapri~ba fir an a~itar to ~t as a r vac is ca ed where tfie~ - ~ . ;manibQr ~S dtr+ected to rurr a ~ii~ipo~i~crl proms ~~#~~the. janitor vvare~ a receiver.~0 Tt~y have

~ pro~os8d ~ , nimiber ' of ~oss~e~ t tt~{ s- #o re~art~e. the role„off _#fie .;;rtot~i~tcr ~n~ the ~co.~t .'. - ~ ~ p ~."• T~►ere ~slioi~ld Vie. gT•t~~ty=~bo~, and ~Sct~r~~~af,,~he rotes; ~ct~ aiiY~ t~n9. ~ ~: .

~ . . '. _ . :per~or~n~ '~y tie ~nonitvr"Cn ~ee+~h' p$r~ct~ar-GCAA. c.~ce, ~Tl~ey.~r+~t:e ~'►~t them ~aY bs s'itu,~tiv'r~s' , ." _ _ : wh~Pe t~8 .~01~'t er~d r'8 t+~'O~d. Ct •thy flt~rii~tOr r~0~.-tcr e'n~ake :r ~me~SfRt~Qt1S~ fD1' :.

. ~. e~cam~3e ~+~e ~~e .r~ioei#tar t~€s hs~ped the ~de~+or ~o-Ae' •a _+matc~ial trasesaclio~i. ~ They~afso~:. .~ ~ -~ si~ est~#~iet in ~c~ses i~iere t~ ~mor~''is ~in~ than~a w~a~chdo9.. ~u!•_~s =act~~lg ~eis 'a ~fnartsza!f - . ~ _ _ t

ad~Qr t~ ft~e dam, tie rn~itvr shautd not tie trea d as art of#icer a~r a~e~t ~# the c~u~E:r'~ . - ` _ .

_ p tai .has :proro~ios~d 9fia# fi~ie~'-di~es i~#:#he artrtar~it~r ~houl~. be. -cir~rt+t~ed up. cre~t~ng ~i' . . . . aadRt~StBtOI~'. ~3pQ~titBd ~jl $~"~ ~f ~f'i$ ~ fl'i~tl~bOr "~ip~~i'1~8d by th@ .C.~i~p~8~ COti'ttl'~It~?8.~

• . .. . ..,' ~~9 8~~8StS $~1~t$ X19 $i~i'ltfi Ot 1~I~t~ ~]B~-1'B~OilB~~@ ~S .~~. ate .BEt~fTl~i~I5~8~VB p=t~C@~tir'88

. ' - r~ for .pnacessing and irnptemet~#ng a of eitran~merit.. similar ~o'a proposal trusteeunder the B1A, inc~ding the ~ac~y a# the cash fEaw statements. receiving proofs of ~daim and.

- . ~ - ~ Raya! Qak Mints t►t~ Rr t1999~. i 1 C.$.~. (4th) i':_'. matt Rosman ob~nre that ~~insay..gr~tp~• . tx~tire ~+co thac tie go~sr9er to , $ ma~~~ac be ~cpx~sly incorp~~at~d i~o tti~' CC~A. citf a~g

~: ~ Thz ~sot~vetacy iastitu~ of c~a mx! t&~ _ ~scic.~iatioti bf Y~vive~rcy antl~~tcsuuctz~ig. ~ ~ .P~o .John Task Force o~ Business Insvtu,~ncy Lax► hcform: Report. tM~tch.~5. } at St}

. ~ ~ ~ t ~tnd Rascada.~s~r~a. nt~e ~G.n d

_ ~ Uttvfd Bmir+d. "drat Dimes R,~tating ~3 Aooep~ed I~sotv~ttey T' cis". f'ti}t}3: CQ►FR~' Fducationat

~ ~.

cafih9~ mee~#rigs of c~edltors. Under B~i~d's proper ~rtod~l, ths ~ ~strator would tae able !o - ....

. ~str~e fie tie of neat advisor; sirate~~st and atfwcaia for the aompany ~ ~ ~ ~detyto~ . ~ ,

~'cc~rporaYtdn wished, anc! #hat in such a t~ef~ned.ro~, ttie audity~ could act ~s ~dmle~i tor. ~iaird

- ~ 4~i@I't'&~t#8S fOT $ ii VYBP ~OC•~P'1@ t170~i C~ de~lreg with matbe~s where~.~nd~~iender~e~from ~ .

the d carpar~an~ ~s r~gcdr~d, comrrt~r~r~g .on_. the reasvn~~eness -t~f - tt~e .cash: ~f~ow - .

m g a~ w~istEe #f ~hhere .1~ , a rriaier~ ~~hang~ cif ~ c3r~curi~starices ~as~d

cvrnm$t~ti~g on t~1e rtts artd fairness of #h~ '~ . .. _ :. - ~ . - . ,

1f tt~ harm fa ba-preveri#ed~~ cot~fitct of.irltetest or p~rce~ved ~onfliti ~ Everest, then the sta#ittvey

.langieage rtes ~ addr+ess caore f~Orne~y flee rile of auditor std of rnannor. ~ The :au~Itor as

~- : ~ fn~nc~ advisor of the d~b~or ~s1~o~Id be~ prai~ib~#ed from_b~ng monEtor, yet ~ ~ auc3~toar~ that has

• -meted a~ ou de: in~iepetld au~tor in a ~sinteresbad rr~anre~r coaafd perfo~rn~tt►e'rol~; ~ t ie role." ~ ' is ~ . mani#o~` • aanly, as natrow{y defined.. SiRot~tt'iy, and that has ~becvme ~ too ~ Gos~ty.

. . lnvdlvad~~ri the'debt+or msn~gPsener~s d~c~on.~r~ ~I~cutd be pa~ec~uded~froiir~~euig nianitor,• as ..Mist frsrrolv~tt~t ~maY ~~' ~ ~~Y. ~ Provi~ .~ ~npartiai ~ o~~on' ~ on~~the 'financial ..

~tate3~t~tts. 'Ths • tor~r d~fit~tiofl~ of~:~he mQn~or also .re~u~re~ ~om~ ~da~ifica$k~n::• ,The~. mon~~g.~ repb~n5 artd - med~1~9 ft~nct~t}ns o#. 4he ~gr~Lor should. t~e~ dis#in~u~stie~t ~fiprri the

~- ; . . ' a~vot~.djr and firi~rt~al, cx' buslr~ess ~'Etu~~ats. t~tfhere the tnoritt~r is ~p~ottmifi~~the fatter. .-. ~ , 'fit ~s'~nat rely" • ~s a monitor;. artd h8rtce should ~erhaQs b~ c~tied ~soin~ttiing`t~3lfererit to '~

. ~ - ire~ec~t .tom# ~~ ~~: sot ~an off&~~ '~ofi the. ' ~ - . ~ • : ., . . .. - :. : =.. _.:_. : . _ .. - ~ ~ - ,-: ~ e .aoeaet ~°et~eririg an im i~ :cpinio~i ~on ~:~'s}~c:t~' :'vf tt~. . ... .;~ ..

. : _ - ~ prar~~d~rtg. tt ~ not.the tftle of ~.td"~or,or m~n~r the ~s probtsrr~ar~~.'`l~ut~'i~ather the`sca~e of ~,dcrt~es and~coc~1##~ts ilhat et~usf be more Pr~peefY icfet ed and; whew ~~~ssar~yr►. s ued This

i ~. ~ • : - . _ - ~~~ tweeds statuary codi~aat~tt: !n thy, inte~3m, She courts shtut~ti i~ c;sie~ut #t~ diss~em the role a~ the. ~ 'tnor~tar alai tie ~maa~tt .~ defierenc~. tf~t:shoufd be rd~i tts c~iin'son: Tt erne sHouE~ be~ a

me~at's~ for cr~t~to~rs ~+a -expras~ :ttt~ir..opi~iwns as to the propri+~ty af. tfie ~ aioi~ta~s role in advac~ceo~ the c~ur~a ~rtmer~t or v+~ry sht~rtl~ ~fterw~, with mean ~ny ~y ~ih~ coin of any

_ - ~conoem ebaut frr~~ttia~.jr or any confltat.

- ! .Y' • t

~. t~ltif~ipE~ ROf~ ~# T a11d R 'Utz ,thy CIA ' ~ ~ -

!n G~n~e3a; it ~s aamman that ~Ohrency prafesstar~als pct ~ more than~Qne~ca~acity. Tt~e court. . .has ,he#d fiat the cour~~sp~oir~ted re erg► is neither sn agent of the security hQlders~ nor ai the- .

. ~ d~t'~r, rather. it a,~#~ ~ tts o~m bett~If, ~ ~re s€~t ~t ~y tine sp~oitrting a~der: ltd rt reports

rr y~~'tit~._ .1. 177'CT,~~gi~rtt .~s a mans of be~a~. a~u~t;~bf~ to ~4°Re court ~~nd tQ• all ~Yer~st~d' p es'~ Yet

~~.~;~~;tJd~ :~ : <;::.~ :~ = : irt~# (n more that one ~tty can rals~e issues of po~sntt~ cont~#cts_af~ jrr##er~,st.~ Far ~xampte, irm

~: ,-j~~=~;=~~ tmomrvv~tth I~vestot~ S} ir. 1~tel.; the ~~c~K revoked the ~ipad~rttm~r~t ~# a trustee vvt~o ~+►as ,'-: : ~~~~ r ~ . ' ~ ' ~ '' m . . . - ~ ~ ' ~ ~ ~ 'a :'the court #vtsr~d .that in` ;, ' - ;4 .: ; as ccr~qu~dator vfi ~e suub aeies ~~ tha~ bai~tcnipt ~~ebtoi, ~ . _ . . .

~r~.~ ty"i• _•?r,"~!~[p' ~M~`R"e` ~ L 1~ 6iii~lCG ~rai~ ~~ ~L~i 1~ ~n ~~~n~ ~Q1 ~JU ~ ~i~~ Yiil~ i~ N7 ~ro~ ..

~ ~"_~.~ 'cif ins En~ -whf~ the acts! a~ i~tq r'tin#eatyta ,it~ftductary.ob~gs#'~on. #r~~<<~ ~ ~ ~ - - l/ffc~ f Trustee otJ v. St. Jarrr~s Ssc~arrfi~s Inr~,. tote ~ Otaffir~~ court of :Ap~iea! -set ~asEde the

" 'h~ ~~`~-.;~`:~:~ - ;; a. .a#r~ti~ent of ~n ~ in~a3~aes~cy pra~#araer as t~c.eiiver ire- 3Y had acted •~s trustee of t~vo~::~~„ +'~2I''~ "~ l Yb~aC~C~e~t ?~mPa~ies grid ~n indi~rtdual b ~ ~ e~~ts ~tbssgcaenti~ ap~aRntsd ~s e~eiv~r o~~'r - .~.~.-`; ~ -ofher ies ~' '~`he Curt fo~r~ a cot~iict`~~fntec~es4 eacistsd befiNeen the p~~~es~imder1. ~ ~. 4 ri'- ~ ~;;.~..+ 1'rar'."..

~~` `~'.k Y r' ~ • ; t~.e 'ot v~.~he [[1Sa~v~~y ~ac~a~n@T. ~e~t ~~e ~A P~~~~ , , ,

~+ray,• ' ~f.. 2- ".". ."~ '. -?'~.•~'. •. .'~''' ~ • ~,

~•i,~' s -~ ~ .~ . ,'d~~~ motets haQv~:h~Id that the tiustee is ~~o•~i y a~.nd-conduct f, in ~cscii a manner ~s~

c't~st~~,'r~"~i>. x ,•,:.• ~` . ~xD;~~ ~Q!11 t ~BBt dC ~T@K.~~'V f~'39 8~ i'~8`t ~!!~'~iJ~f. , ;~~'I8 £~E}t~P~ ~tV@ B~Gt~

=~~ ~ : ~4 ~~.~ : - h~e~ll: t#tat wfier~. a' pri~rra~ , _ r ~~~a~o~ a tritstse--in~ bankruptcy, ~ the trustee as acs=;~~ ;~~:i':" ~:.~:~:.:::- .ofE r of,~~~ cotirt ~nuat rare nt~ el[`~~ed~tor~~ar~~eti's~re.#ha~ ctlnRtct~ng. int$r~ests ire resoled

~~s~ t~`-' ~:;~ =,r , . ;~~A~~~ ;Trtu.~~ 1~ag privy ap~aolrited receriier acq~res a t iler cab~igativn tli~n ~nly,to .the~y•. ~~ .::a ~z d'it. a~te~~~it fi~kes~~cri:~he~~role ~at: ~ee:-W ~~e. r~erohrer: is :cauet-

~:; . -'~'.; s`` ~- ~. :,~ ;t~ ,r~~~e~, ~3 ~ice_a~ciy .h~,s '~ di~iy' fo ~#h~ :~oi3t'i~ ~i'~d~ fio :alR t~editars thy# cor~tir~ctes ~~t ~s..G ity ass

c•~r~r r•.v: ~' ~ 1i'Itdi3'~T~ t}R~ SCE•'W~~'t~ ~Ti B~ ~'D~ ~$3;'~3id~~i1ElSt.~@ ~@R~3~1l~ #O SC'~Rl~_

~;:~ ; r~ ~ ~' ' ~ r .~ ~ ;; :An: t~~ocy'pro#~s~8on~f ~m~jr: ; a"true ~d a~ re v~r ~ tt~e:~se~e' erzg~ ~ : nt,' ~~rrt~d-"*~ '~`~ ~ `-;:~w,.~~:~aa,~t e~.~I; tom, thg ~u~erir~tei~cdertt~bf:~arikrit~tcy o~r'th~ court,-~:and•ptt~~vva~elY: o$nted

`~~.~j ~' :. -~ - ~~f, .. t. ~s .remover. by~ the, e~editc}P ~ar d 'bji.~roiert or~#~r on'a~ credos ~ request.• Thy :pr~vv~ely`t. ~;-... . ~ o~r~ed r tieoQ~rs~ trustee~occu~s b~ecausa't~e ~ reci c~ed~tor•.may, b$-~~ble_to b~reefrt

~'. - ~_ . #rat havi~ag~ his receiver ~:t ~s hus~ee, nnc~~g the fug range of in~re~ig~tian '$nil real'¢~~an, , _ _ . .. pova~er~ •urtider the ~Bd~A; the ,abi~~/ to pursue revb~wable tr~rts+actior~s, t6~e t~rust~e's sb~'ity to

n ~ Bu~r~rrrrs ln~rr~rlvrra~. strprra. SS sit g a. 34. ~ ~ . ~ .~. ~ . ' . =~:Coin~~io~rai~esitth Im+eat+Qi~ S~►rra~ca~e ~trL .~198b] f t C. ~i.R {I'~ S.~ I47 (B.~S.C.). .

• ~ `n litddge (7~ussrer'o,~ v. S~ .fates 3erardt3rs Tn+~ t2t)4?.~: 34 ~3.R (4`~ .'~7 tthit. C.A.).. , : • ~ ~t ~t i~ ~ ~b~cdve•ome. s~e.T'artn~s ~,g Ins. v. Cam F'uvd 5rn7ces l td. t?'rustee o~ [I988~ ~i7 CB.1

\VsBi~ 47.i~•es 7~e.~~.Ns~s ei ~~j}.~ Vwd1.L/i 6~i 187 ~ JaSs~ ~1$~7jN ~~~ ./~ ~ ••

~ ~fd~' ~'tlAR?Y~ ~S~ititd~ Y, $~fl~C ~Of ~asY1d ~CY777TQ ~ a 9~}. 'JQ C.$.R. (~.$.j ~~. ~ j1~~}. ~ gg.j.~.. j j 4. . - . {p.~.LT.U.). , ~ Q ~Z9$9Y. ~I Pd#Id. ~ F~.~2. ~ f~'.E.I.C.I~i.}.

-- sa 14. i~tk3,1+4.~t~4~. ~1~. .

._ ~ ~_ _ _ _. ..

/.r.:` ~~i 4~m: 't• .~~ ~• .1 _ "-~, ass• ~1 ~. ~(# i- ~ t ~'~r~ a` i ~s. •

•:

. a .0

r' ~ 3: i t♦'.: r s•~s "'s :t~~'r ; ~ 'e a e ~i` ~:t`es' f _ s' : .E • :~;~ '; •" y

r ~ s ;a~~: s ~ i .: ~ `..- , • ' "i:: -:h~v >~~' • 4 t' r. .•h s.e:. • .:t" .~ ...•::,•. ,.. ~ ~~: : : { s f, a • '►

_ ~ ~ .....~ r +~-: ri~~ L I ' : ' ~- +o .~. s:,~ t ~.... ~y ~.■ ' e 1 <' ~~ •2 ~ ~ h~ a -~1 'k:. • R r . Y t. :.'S

;,:.tom• ~ f 1"- ~. '^ f i" :....~, ' ~ 1 ti a_ L • ( r ~y,. .~° .... ,_. • .: .. i 3:: . : r f: . ': 1 Z ~, ~. -.. . •

't~ : :, f ~. "axe. ~ec :i~; • ~ ~~_, ~Ig. 3•► :c~ ~ f:. t " M ~' ~ .' ~~~ ~ 'R •

t - _ l.. ,x '"'i-~ ~: i •"-. ' • ! ;. t :~-f. ' i ..it ~' ~ i ~ •t" ,. r 5'^.-. - ,'7 f,.: • ! ~~R C "~ i'w tf: - f

~ _ ~ t :t v.~ a i~ w' iw. ~ : a'" °r -~ ~ti s : +r~ ~: • 'f t. • a

. ,~ ,~ e

_ 1" _+:.. ( 1. art - • • ♦ ~~~ tt l i • 1''

~4t~ €~ ~rtt ~t • a# ate Sri Pttt~- t~ssttier h ~#~ •4nds~e~

~ ~a ~I~i.

~' `os~s 3Uv 3I, B.~ X45, ~4fi. ~~4.

.. ~ ~ 33.4.84.

~..F.:~ti~ ~-~ ~ -.apsraies ors ~~t~a~f a# the s~ect~d~ct~di~r;'and~~u~ atsti ~ateh n stsf~~ciei~t ac~coaa~g. cecards

~~R• :;: ~ ~ :~ ~f:~o~se~reg~ the ~ a~i~d ac~t~~ ut~er~ken.for the b~n~fct of the s~r~ed. credltar.~'

. ~~ r -,~~, f' :' - , ~:~i~r~e! ~o~ his, eE'~e~ved #tit #~ustees s~ trequ~#~y u~t~riti~a! art. ex~minieac~. the opinion that

~.r:~ c~t~#y $ fd • ~ ~ e ~ ~te•~~gg~ & tt~i this ~s~.Parliac~eriY.pr~bl~t'ttai~c eart~ere,''~.`~ J `'~.. ~; ~ sec . t v~ d 8n t

A r.: {~;:~~~:s~tr~p, is taken beet n cet~d _there sre~ pro~sPem~ nth adequate carporata

;- t on .and de#~s~s in ~r~ution. Yet in ens inay ~dde ~ that an ~xarninafion o#~ the

i ~ ~ , :: -. ~ v-..~. or tether ~ ~Yfert~ is w ~ the Gosh ~r ~ tfie: i~tentia!- ideritt~catfan . of. _ ~~~ ~ .:._~.:1,,rr~t~~~books - rrot: - .. •~ ~~•~{?~. ~~ay~'Y ~.•;~ r~~ _~Bi,VIQ fi.~ ^~i~7~1~i~7A S ~Tif~ ~~ VYfQf ~ ~ .L~i~~ !~ .I.~I~ C~•~w„~~

~~s ~s,;~ :', ~~ ~:~k :~; ficalty; .p~b~srrts ~vhere~ there i~ a ~~spute rogarding ~ #h~ amaunt awes9- to the secured

~, ~s~Y„~,; ' t~'~~OOC~e' T'BgSY~lCt~ Wt10 ~Q@#S ~}8 ~ 8~l]~ t"~St+~tS~ C~ ~8 f~iZUC~t~~ ,~i'iY$j~~3l1t.~8 4 '

ti~ ~'"~." ?~~`:~;: ::tr`~nsact3eM• ~iacur~+d cremator ~ i Yo ~Y surpfus~ prooa~dss be-paid out becats~+e. of von~em

~p~ ~~ t:y:. ;~;:~.. qua , .. ,. .7~v~o~men~d dairr~ ~ c~ :a~arra»ty dams; ~ or wh~a~e the tns~ectors arrive at a . .

•~;~ -~ ~' ~~:^ "~> _~dlff~r~nt.-c:one~usltatl.~b~t tEte ~outs~ of ~ction"'#ti~t 4~e pursti~i~oet.irts#~uct~n ~.its~

~ Y~~~-~~r~ - ~~ ; ;;der ~ le~carriiict~t~g.t~fes. iude-~ac~ing as~=a t~ias2~, in b~ktupt~y_#or.a ~etaes of mated _~

: ~ ~ ,~.~;• •. -"• ~ :ixyrtC~t~~ttt@&.,# .P.T1~ hSV~ ~R'~8-CdT~30f$~ S~$~~ Of OP C~&b#S;'~1Rg :8S _tRiS~Q9 W~1~~ the

i .~~?~:~,;, ~~: ~ste~'~:ac~ n,~. firm is' a ~Ei~or:c r.af 4~e. b~`~cr• acts #ar: a rnaia~•cr~ditor. of ttte

~ ~ ~:vS~-.: ~ ~ :s,,~f ~;rt~t~.t~aL .?'he Q ~ Cotdi~t~o~tAj~esi .hss 'tfi~t, ~ tit ~e:1ri bartkr~i~y ~vi~t .got. b~:tet~c~ed - • .

~; • :.:~ , `~ :#:.~;~ on ~~e .~r~,inds. Qf~ c~~&t ~# rep# wtiare the tri +e ~' also ~ ~iriir~e~y ~~Aipot~a~ed re~a~ver if the .

.~';` :.~; ,j: • .. ~ =trus~ee.~hs~ r»st~e~iu~f-t~ofosure.o# #h~ po'ssible~cari `,c:~mp~inirt$.~p~r~y~ie1$y.~;fn obJecting .

~~ y~ ~".' ~ .' ~~id d~elra ~S r~a•~videe~e of ref pry e.~~ Sermon '~S;J(2)-c~ tt~ :8t,~.~equir~s-,~ha~.~~.~t..},.~,., .

' _ *;. : ,':~: _ #i~r ~ ~ the off- ~cea~ of a ~ ~rrtity: ~ Y0Y ~ctosure does not adr6ress~r ~;; . . .~ . ~; ~ . ~~. .;t~i,,pogert~al ~ffiic~s ~ue~~ p~ct~+ar~y i~9ere~~h ~l7dy be reviv e .~rrtr~i-cotpo~te: transfers .

...:. . =;..::, .{: ~ V~h~e~. ~nc~r~ ~ ~ ns o~ the ~ ~ the ~~s ~a ef. . • ~ the ...

. g , . P~a+~~ ~, du~r cre~tars.

As' :a .couu~t~prgoin~etl oar, #h~ p ,truster ~r~oi~ ~ to creditors: ~vn .the tn~s of any

. ~ ~ - ~' B~tnIauptry lD~rective id'o iSR "+Casts gad Dlsclosamcs ~ wl~ the don by thc'1t~v~scee of.. ~ • Seed Cs~t~s' -A~sets". See else Ba~erizgccy Dic~re !0 ~R~mpt~tt of ty~nd ~ctros~ 147 Levy of the

_ •CIA". w~iach p~vit~ for an macouatix~g ~d ~f stets whrc~e tl~ ayss~c sills gosh eac~mbcscd and• ~ _ bencd is d~ sari ~.

. ~ . ~ DovvdaU. "~c~[ ~d Canft~cct ~s fair Yaso~vency ]Pr~titiaa~exs". Superint~nndent of Bas~.zuptcy ~ .st g4 t~ fell s~te~tt'~, ~ ~ ~ .

~. ~° lied at 11.

°~ R...1.11iirn1 ~'atrstraa.^tf~rt lr~ ~. Nicol {I9~Si. 30C.~3.~. (3d) 9~ at t33 (t}~t C.A.). - .

l

~prapas~! and rust ensure suiflciert d' sure af.ihe fnances of th~ cf~b#cx sc t#~at crectittars'are -. ~ ~ ~ . ~ •.

ab#e to make pan 6~#or~ad dsdsi~ ~,s to whither Yo vv#8 in favour of tie proposal. 'fie tnistee "'.

nsr~sed in a notice of intes~on ~ ~e a propasat bs mired to fie ~ re}~ti~ cn the i~us~ness grid , .

=. ~ffslrs o~ ti~e~ dablEar where there #s any.materiai as~ve~se charge en the pro~eated cash ~fow or _

i~nan~~1 c~cc~ w opt any ~A~i~n $tu an ext~ns~an of the-stay pae~ccl. '~ornir~n~r~g :~n

the prose ~o~ ~ dsv~sing ~ ~ v~tiie ~a!-~ . ~$nknr~cY. directives ~rriphasize ~. that the

. ~ ~ c~+sd~y of tn~ bsnkn~ptcy and fr~alv~8ncyr system tt~p+ends~ on trustee's Qbjectiv~ ~n the

.. ~ . ~ -pno ss and on fist snd #a#~ c~cEasure of i~l~v~nt Ir~fcn~at€oe~.'~ Yet the p~opossi ~ru .is.atso ~ ~ .

• . ~ to advise the dshbor en hoer to ixaft ~ ~ropos~l ifiat is mast .likely to g~ve'a charge Eo refiabititate ~ ~ ,

the debtor ark to seeur~ the s~gta~e cre~~tsr su#~ort in tie pto~osal'process. At the same time, .

. the tr~ist~e is~ regiilre~ .t~ tepart on th+~ r~sonable~te~s ~ot;the d~t~r's. sta~erner~t. of pro~~cter! ~ . ~.

' ~ ~ cyst► flow ~ ~iVhite ire are potential ~otrf~' heee, ~t a[s~ se~tns eviderrt that the fcvstee's race ~ _•_ ~ tea engage ~ ~ baianc~ng, . t~ving r rid to ~th~ ~rtiterests of atE Stake~oE~rs.: This r ay, nct he ~ .

..,.

• ~ > ~ Disdt~s{r~e at ttt~ out~t~ ~ at~r iiasotvency or banfctupt~Y Prv~ ~bi• ~rt~os8: ~nte~ests~ . : ~ ~ ~.• - - - - ~ -.. .. ~ , . - the e is ttg . on 1}s~aft .ot..~ncludtng wr~lten ~cplan~an o~ any: Ppt~~t~i ~~

r ~. ~ ~ ~ " . :ccn~cts of irtfier~s#'that are 1ike~y. ~o Vie;. _ ' . ~ ~ : .` ~ ~ ~ -'~ . ~ =~:: °.. " - .. . . • - . ~.~ - vein ~ some'. $ssurance : of .~nforr~isd . cotYsent,. e~ther'~ #hroi]igh'`~ par3ies ~~s~eking ~ ~ . .

. . ~ ~ ~ . : ~ - "it~depcnds~ t~get ~v1ae- ot,t~rt~t~ tE~ ~ceiiat~s sigtt~~ii_s~kriow#es~emr~Mt'as to . .~. ~. . ~ - _ . . ~ fihs n t'e of the ~tat~ons~p; : .. ~ . • ; ~ ~ ::. . . ~ ; ~. : .

' : . ~ ~ ~ .9~ ~erieet spry ~requiz~emstlts foc haf~ae. ~ c~d'ftors ~~rid tnspecfaYs'~~if. ~m~ ~du$!~. - - ~ ~ - . : appairrtin ,the. of r~nvn~ta~on ett~d notice': of t~$ t~ga1',~optri~~ ~as~ 40 4h~ . .

• ~ ~ . ~ : ~. ~ ~ ~ v€~~y and enforr~b~tityr,~f the security under vuh~Ch ttie receiver ~S ac~En~,~ -•• ~' - ,. . •y ' 8Cnl~1't~SB fit@ `~f8~~ 8H'{d A~Bt'C88t}~@' Q~~t1~1, tI1'th@ lllt@1~@b't5~~f al1~St8k8fiQ~8t''S;

s~ ~ have dear policies rang. the cott~stur~cat~on ~of cor~fideritiai iiifotrriattan "arid clear . _ ._ ~ ~ ~ : prac~ses for disc~csang this. po~cy 4o creditars, ir~pe~oi~ arid' at~.ef ~takeftatc#ers ~ns

_ the €nsai~~er~cy or benkruptc~r process.. inctu~ng how ths'~ sc~~ off' das~ rre may• ~ . situ it the co#e of the professicm~l shifts from rec~iv~~ to tn~stee ar offer rote

-, . . ~ ( . ry +~ld~nce in the would ins t~elptu~; - ~ ~ . . . .

' °' Sutra SU.4{ 1 ~. Bd,4. -~ ._ - ' 7

~ B icy I~r+~ive Igo. 2tl. ?af vn to be Pmv#c~d t~ ( Items in Caarnmerci~ad peo is".• ~ '~'' Section 5{~I. BIA. - . - ~ ~ ~ ~ ~ . . '

- ~-Sec~t~t I3.4. BiA. .

,~_ .+., a , . ..

:..~ ~ e~ft~t1G~: ~ ~t C3 saf ~ gad ~ 1 ~t ~ ~3°~t# ~t3p~~b~ ~ c~r~3r~~. '~r~"th a~~~ .. ~ - ..

~ x .r.~ .. '' -

~ ~a>.~ .~..~~~v ~p a tn~~l~srn fe y t t tri~te~ ~sr ~t~€$r ~ nczy ,prc~ l castA tiT i 4 .. ., ~.

',+ ~ ~ .~ ~ ~.-ra n ~r rt t~~e ~ .~ ~_ +~.r.- s~ts~ t cxn~~t'i d '~~it ty _tc~ ,a~ ~ ~ s~h~~~c~

r~~ ~~ ~,A x~, ~ ~.' ~. ~ro~~~t~al why tom' ~~ t ~e #~ c~-#h~ ~t t~r~ are#. Y .

j .~ ':.h =~: t~- ~ ;~ ~p~v~c ~r~~t~. t~'~ti~~g of r t~r +' Fr~f~~na ~n ~. n r~ . d ~~s~apa +~#

Yr ~;~"~,~~,~,~s. ~ . g ~. , .}~~#: t:c~r~E~ 8~'1c~ t E~e~d ~u' er~~ b'~i3'i~S ~1~ ~ii~ t~i~,+r~nr~E€ s,

~ .~`. R' ltd- 'Y"r,~.~ z: ~ ~,. + t f< .. ., .'

~~'~4~~ tis ,_ ~ ~ ~~ ~ c~~cda~ ~t~s~s -~ ~ „~5'~ car 'r ~~v 1e~ tt~ Vii} s3p~ imrn~ ~0; na~#;de~~~tAr=~~A ~ ~u~rA~,~~~ t~:~. ~t t}~~'~r~c~lt~o~~~af ~u ~r ~~-1~i ~~ ~ -pan ~alt~rr iEiv~

~~~`z l~ _ r ~~ t~ v~or~ ~c~`~€ r ~~rs d tai ~a~ar~~t~c~, r~ba~ ~i~ar~ r~~r gals ?~ia~ ,

"~- ~,' ' .~ ~ : ~, vn to ~ 't-~,A~~ ~-~nrsu~~y, ', .'4~N~'~e . t1 ~1~4 r rs 2~a ~"~~tr~et'." t~nk~pt d p~r~,

~#" ~1X ~,~n~~e 3~ t~~ for~nj ~r~c~s ,a~.sec~r~te~,d~zi,

a~rig~it~ t t~`°~p~rs~"'~ ~ .'fir j~,~~, ~~,j ~,,j ~~~{ ~'# ~},,,, ~j,~j^ ~r~t.. T?~t' '~~~ ti

~ ti1a~7~1?~Jl +!~i:~ ~j. * ir~A ~ ~i+~ii~-,i~I N.ii` ~f#'~ ' ~r ELF i{a~~ T~~7u ~' 3~~la~ ~. ra

•~' J ~ r:, '~~t~ ra ~`r# ~ ~ ~u ~~ ~r~uc~~ t~ ~~ai b~~t~~t~~y~#~# 'h ~tso'~rsav~ti ~or~s~c~er~iatyr. ~~ti ~

.,~-~~ ~~~~ s~~; ~,~_ ,f~~t~t'~~,~tt " ~t l~tl~~; +C~` tr~~+~' a~ -~I r ~`~~s~ ~k~rtg' ~ l

~i~ "''~? ,~ ~€~ ~.~' t€~~ t ip ~r~ ~t~c ate~jttll'1'~ fi~~l r~~l ~i~ts~ls ti~~ -~~~ ~'~+~~ ~er~an~I . ~ .

*f ~, .. a" 4 ,b tt~ '~i►wtr~t 2 ar+tt~`~ i ll t~"~~ ~a, t +t~f~~'rr3t~#'1~~t~s~ ic~d~i~,~ y~►t<t~ p~~~ ~ e.

+ _~ + fir Ott . 3'~~ tt ~ics~r~~"~'ri rc~~r~r ~ a tc~d~ngc ~a ilr~n~ # , d tc~:. ~ r~a~4r ~r for a! c,~i, ~~ +~cp r~~g ,the ~zti~ av ia~I~ ° to ~f►~

- ~ '"s ''e~jR' tR3it-i~~.. ~ ~~~~ • ~ IV~V Eftg ~~~ ~~Vi~FGd~~ 4L 1~7t#

- ~ ~~ - =~~'. .' ~ti; ~ ~ ~~ ~ 8t tt fl~ -fit 't -C~ '~' + t .

-., s d

. . . - ~v~;fin s~ rc~ . r~~ °~~~~' ~ t f# ~xi't' a~ to~~ ~a ~~ t~.. Bit .

~~'t~.1~1t~'#~lt~..~ttif~ C~G[~ i j"~J",~, .~~. 3ft,~?'{t~ tii ~~G ~.u`Cr8 2t~0 #7~1~ f~`F+~23C~'.~"~Y :, ;~€~ ,~,°~1'L'~1'~`. {'~~[~'4'' t« ~~ ~} ~*~~ ~+~Rf'Es` J ~?: +~}~~. ~dtfli~s"tT~l~t~' ,~fft~,S'~ ,~C~Z`

.. ... _ Z .

( ~. ~~ ,

.~' S± tk~ ~ iron ~s~ saw tx°u~t a

~~

practsce sU~~ests t#t~2 tha tn~st~e should ex~lstrt its ob~ei~ons at the ot~ts~t, be satisfied that"ttie~ _ . ..

debtor undarst€~n~fs• tie nature of ~. tf~ trustee's ah~igat~ons. and have tf~e debi~or sib ~ ~,

. ~ adcttowledgerr~nt of~ eta rezatio~hip. - .. . " , . . .'- -

. ~ ~7h~ ~Ssue of c ici~~stia~j► Es one issu+s p~en#$1 cor~i~cts and ~ ethical issues .ate.'- The . ..

~ - trustee, to first a~terviswir~ tie d~#ar ~o the reasons foi~ th~ ~fmancia3 ~disires~ and to

. ~ ~ ,c~nnvass the ~va.ileble, rr~y her ~or~atian -~egatcfistg tratisa~ans~ that=are~ rriaviewable ar - .

~pat~i r preS~er~r or ~eti~erne~s made by tf~e del~or Ott ti~t~' pe~Iod t~Eding~ yip.: to filing foe. .

krc~cy or. fif~fl ~ tto .of ratan to ~tak~ a Pr~s~t: tf the :trustee ~fiss riot . been ~ ~ .

. . ~ ~ . ~rsolutety candfd at the ~o~tset ~ot the rne n~ that ~e tniste~e is ~the~e► to~ repr r-rt~ thecreditors,

• : : ~ ~tt~ truster may face ~ serous cont~tc~ ~n terer~ c# ttt~ et#~ic~ of e~her.taking.ori ttie ~ngagem~nt o~

~ • ~. ~ ~ ~af ~port~g. 4he c~rn~ersa~ion to Vie- tnisiea that. ~mat~y does tike, oti' the ~ssignmeM:: B~ast.~~ ~ ' .

. . -.p si~gge~ th$t 4~ t~stee' be ~c~ss~r. abotrt the ~pcofe~onal ~ob~gations. et it~e ~uiset, that ~ ~ ~ ~ ,. .the trustee f~ ~eb#or~to e the tral~s~t~cias end ~~t t~ie,lrust~'pt~u~ ~vesf~afron . : ~ , .

of ~~ impug~ecf trens~ian. Yet t~r~ mgy be pressure fo ig~lo~e these ethics prac~ces~in~ord~r~.- . ~ .' ~ ' ~ ' ~ ' to ~cur~ fife: ~- - ~ ~ " '

.~ ~ . ~ As v+~th cammercia~ ~~oivenc~+ practitioner. there h$s been a }ia~icitjr of o+ ng ori~e r~te:of tha .- .~ersonaf insotv~tcy profess#onal i~n Canada, pa~culaily in r ct of, efh~cat~issttes;~afthough this •,' ~ ~ .

~. ~~°c~ n~ E~ now . sis~tfig ~ ~ o~ur.'°~ . `I'i'i P'~ersarial , insotvet~cy W Talk ' -~pr~~.: Report. ~ ~ . .. - . -~ . . _. ~ ~ '. ~ ~ '~brmm~SioRed by the ~ederei goverment #o;stuity.~nd make mendations.:on refamA:of the. . .

. .' `• -.•. ; C.iXtliYl 011 ~0-Vit81 1'O~ Cif ~ ~r1 ~8 F}T+ ~0~14~9V$i.1W~ O~ 4t11B t~'If~$-aCAt~~tit1G; .

', ~ ~~if1 ~f~ P~ d P1$@C~ .~Z1 '~i~l~ ~~t3T~~ . ~T}il'12tf7~1 OA ~!$ ~SS11~ Of: '~@ fA~B O~ ~~18~98~. '~@itt18~ ~ .

. . ~ •. - .:confi~c~ts csf int~x+est fn the-.prp~e~s~ the faa~fuure ~o und~rtatte ~pirlc~l~.research c~rirtg t ie reformpr+a~+~ss e~ti~ the facture to -consider maw, fimdamerrtat, pubt~C .altefinatiu~ ta~~ fhs: ~currerrt~ .. ,

. ~ . pr~va+~pub~ item a# bankruptay.~ Suhs~qusnt ccmmernary by'tfie t~i+,to ~d~sseriting scholars : . .. ~ ~ _ ~~ inducted e mare direct critique ~f trustees. ~t fs worth ~xam~n~ same ofi the issues rased in

• _ an effort to think about the future dire~ion of the practiC~ acid questions of cort~~c~s of interest and - ~ .

. . ~ . ~ a~~~onsa acs. ~ ~ ~ - ~ ~ . ~ ~ ~ ~ ~ . ~ ~ ~ , . .

- ~ inz avid Wood std Guy~iae ~ic~te ~tav~ boE~t dy written cm this subject. provldi~ a kelp~`ui sing pointz . • ia~ th~aiig about the sole of the ~vf~ssion~l is ~c~oa~at insolvency and b~n3~uptcy cases. Ixtvid S. Wt~ad. "I'he

t of the 1~se~e is dal ~asolv~ncy S".. Aratuol Rrview of Insatve~~t p IaK: 2UD3. tToronto.Cs~s ~.'~t~?4): G~tytaine Houle. •'~tt►ics in t~ Practice of P+~onul h~Iv~cjr L'a~zr". P~P~ P~citted do the -fi~ AnnBal ConferQace an mew v~f Ilnsc~lvextcy Lea►, U8C Fi~utty vf~'d.sw. Vaucoaver, tb wary mil, vn

. fi~•wfi~ .

` i~ R ay. Reserwat~ons anti I.~ssen~ Perstmaf •Inaais~ttcv Task Faroe. Final Report. supra. note ~ at 93: I~vobS.. ~icgel, Regervaaions arad Ihss~rirag Views on the Tam ~'ar.~e Re~art. ~b~ ~t 97, -

.~~~~_ ..

e x~~

F~' .

~ ~ ~ _T ~ .~ ~r ~ r !fin Am y ~ +~ ~# e ~c~# t i : ~c~ue ~fi ~Sr' ~i~n _end. r~#arm ..t, ., { : ~t'i~r~: ~#~~ ~s ~ c chc~~e rye ~ ~f ~3y bar ver~;l ~ kr~~~~~h~t n ~z~~ ~~, . •r ,t t - ~~s, ~~z ~ tt~~, c tt~~a~t t~ ~ari~~~ ba~k ~yr ~av~+.~°~ • ~~~t~~~, ~ub~i~ .

. r y qty ~ ~, I i,+~ ' Y R~ ~ ~.!'~ 'Li 1~6"~~ ~ ~Ld4~ ST'~i~'~ ~~i.7~~ x i~V~ii7 t i a~Ti-+d It il.~l i~~ ~I~fi~iT ~ i~E 1143 +7

. ~ ~" ' ` i °~ ~ €n re~t_ss n~ {~~ riE~~anr~ # # ~ ~ia3 nom l~ J~st~ab ,tt t tit ~tois ~'

i . ~~r z '~~~ ! ~# ~' y ~ ~n~, ; s rn~~ty' t k t i~. ~~ •pi#€ i .~ c~c~s~.

~~ i~ ~~X~ ~ ~. Y-° ~~t~r ~t,.t~rss~.~~e~ + '~rr~ ' ~ ~3`rt~" t i ~ -~ y:1t~ ~ ~~'

t ~~ .~~ t ~ ~ ~t~ ~~fri f~r.~~~t ~ti~ar+ r~ s ~ rist, ~ ~s 1~~rst .~'~ t~~ his ,

~;~~jt~>i ~~`r rr°`~«3i~ e8#~d .~ '4,t'~1 1~ ~fi~~''' ~Ii~ ~~~. ~f '# .'~ 1;~~$t7~tl~ ~.~Sf'~Ct'1~ ., 'I!'1.FS~~~ ~ ,

~~.~, ~ f s~ ~~ ~"'~'18i~~ i~ '~#3~}t' X31 ~t~ t~~"1 ~~F~~~C~~ r .. #:t' C~S~3V#?2~1 t~#F~ ~~8~ f ~1C?S~ ~US~ S ~t'~

,~ ~t ~~ 'Fi r s ' Q~~K3~.Ci~C7'i. ~. U~+'~ Q~ if~ ~Fi ~ ~~ '~Ct~ x~i. ~ 1~f i ~~y ~~~(~

rrt ~~~~ ~ •~ ~~' .'~..nl '.~}~ iN s~1i3s Y •Y~ ~S11~i~ f ~6f ` ~ ~ ~/i ~~~4'~ T~7 ~ ~~N~1iL~ s ..

~~~p~ ~.~ ~~. ~~~~ J , ~1°JL~' ~3 ~~9 :~~~' ~'1 " ~ ~#?~ ~' $'~'~? !Q a~!CP~1 ~ ~ ;€~lj~ :3t2~7~1t~3 •~'t~ ~3't C ~t31".

:~v `ci~Y'ri .

;.ry t ;~j~~'~~3 .'"~ ~i iNaFss~~ ~~ ~~~.~ `~~~'~ ~~ ~A~"~~i'i$~Y1~ _'1~ _ ..

'~ t` ~ '~~` ~ ~:~P .i~. th~,{~?~"C'I~ e. ~'~ a +~t to ~ v~~ s ~r~~~ s - ~ .'~~t, '}~ ems' ~ ~ s ti ~~~ ' ~`~-~ Ssf r~fv n - r , ~@t e ~^i~i~ mfr ~ ~t~+a~ J' ~I~ A+c~4~a PI~$~'~f" ~~y';~~t~,~z~ 1c~t8

;? ~~ ~ "` ° <I »'i~ "r~C :: ~~~ ~~ „i~Y~~ i ~ . + '~~..~ lti~7~ ~~~ • iiil ; ~~: =~~ ~ ~R j~ ~

~t~',yo,i<ti~t'" ~ ''r;~ #& fil~!7ll ~ ~ts7Fii iTY 1~ i1d ~N~ s t s « ~i •~14t i.I i! '.~~A~v~ ~•.+~Ll~~, ~Si~7 67~~. - ,

;' ~~{~ _'~ gr~ i rk ~~Y[~ W~~ 't~tillk ' $(; ~t'tFe ~{M ' a ~ i~ ~p~~ 7 't a3 l v~ - -

~ ..tt~ ✓3 ~ ~7 ~~" ,x~ r't~~ a+7.~►ill~{ ~ iw!~~ + ` .~~ ~~ s

~ ~1: ~lY 1.~,,..~~l ilji -

r, ~ t~ ~ t x ~'~o !~~. .~ ~ti fY7~ ~=17~4~i ~~ is~~C3C ~fi'f.~4/~~ ~i'_`.~7Li~'II ~FIV~-+~~ii.1f ~~ ~ki1 iiv •.,

1 - ~,- ,-.,. y~~ - ~*

-. , v

- >j , ~, ~ , ' . ~~ 'its ~~i "~' $~t~i ~3~ 3+~E C7~ ~ jJ~Cl t g;, I~ ~"~"~ ~Ct~3~i' `C ~~ "4~S~. ~ r. ; - ',~$' +F~'~ +9F C~~~ tQt3~. ~ ~£#B S~' ~$ t +~'!`F'~8~?B .~3~23~E?+El 1`r ~3~` }3 t3& °i ' ~t8~3" ~t3~~',~tR~ ~t~t3~,~

• : t"~t3`l:~~ " ~i' #~Cl~'t~ '~3 ~K~lt'~'~ ~ ~ ~`i t3~ ~3~ ' '~@~"$S'~. • ~ $~ ~}~3'#~tfl~~f' ~ ~~ ~3'~E~

t - _ __ ~ «s ]D~~r~d ~~ - ~~;.. , h~ ar ~,~~ia, A t~car,~ ~r,~ ~~sr~rr.~t~`3r Ltt~ h~ .~t~r~~iccr ~cx~tan: k'r~~ce~v~

. ~ :- -t~'a~i~fEy'~. ~.~; . A» ~.:t~,~„ R~g~rrrt~ I~,+~g~P F'~ art ~ ~+~ e I vey` t om.: ~e a~s.19~4~: ~: ~c d:. ~~ic ~ir~c~: Air I~~ct~e~ ~I.,, fit' r+d, ~~. ~ ~~.

` ~ ~ asr~yr .~~r,~rr~. t~ ~' psi 3#~~3.V ~ . gs~► ~ .~ ~$~ s~ ~~ ~f ~tv e~ I.~y to ~i ~e the p~al~rty sum ~r i:~ t~

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fi,..~~j v~ :. ~

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:.ST~~ ~ ~ ~ ~corac~m~ -ver~c~ri~~f~~e~ratiorEaf actor t~~ry, a-theory that ~gnoras bankns~t~Y ProfessEona[s,

. ,;_.~ °~=, - ~~: ~ - deb ars and~a~ers as~saaialty situated. ~sb~c ~c~e #fievey,-tri r~duc~r~g 8t[.groups to a si~~le

- ~ ~~ ::~:~• - ~ ' ~ °.het#-ia~tet'~st ~g»o~s the d~eisl~ty' of profess~oa~a1~ ~rotkire~ in p~ers~tia~ bankrupts}► law mod' their

~ ~- ~ -;. : • 'mutti~ple ob res far ~workir~g in ~t~~ field. 'dust as law~rers, .acsd~m~Cs ar~d others Clot .be

y, ~; ,:~'~;;:. - _'~ jt1m~gd pf~@:~lDl~ 6lV~'y 6~1~91PtCCtite ri98i3t1tlf 8~f-3t1te~B8't dP~ti+11~$ 8t! VtBwS, RUb~tG ChofCe

r ~ ~.~~~rY=~ :. .. ~ ' :'.'threo~r Winds ~to ice pnf~3ca! 'aim pommy d ion ~ $one cGmenslonai. ~vier~i ~of trustees.• ~.~''~-.-~~~~.~:; •}' ~~' ~4~.ti.., ~ s '~1@ B[~]/~iS ~lU~ fOf'aKB~ ~3j/ SChml~'S 8 , ~5 d1Vl~ S`C ~T1 t1lS' ~O~C' Oh ~'1@ ~1IStOT~I O~

4.,.-~~~'`~x, ~ -~,-~- l!.$: ~iankrupt~y iaw eirr~d ~isbtbc choice ~ea~y is int~re~€ng, but very thin an an overaq riormafi~ve

r ~~-~:i ~' fC~!?T~ev~Or~t fdr ~htnkltl~ abOLJt baTlktup~y f~iW. • - .fir- ~ - ~ ~:~~•~ _ ;.:. ..

~~ ~, ~~; ~ ~ ;The two ding scho~trs.tn-the PfiF press i~av+~, 4toweaer, rased some rei~vant pt~~ts that .~;fi`' ~~-~::` ' :=T` ,:~Fie~pr+cfes~n sF~{d adds~ess,.Pa~erabfy motor to the Heist s~age~ofi tt~e legislative'reform process.1;;~.. ~' Fie r

',;,r.. ,s.'~~3t~t- '.. . ~` ~:~.'~'`fite~- ictCltss~e .tits• ~ut~e .~o..t,~derts~ce empir~l study; tfie 'tnh~reM rortfiit~t' ~o~~ tnte~ests of;~ ~ : '`~.. ~ P~ytrterri.o! trus s: artd the.~s~~of `tru~eQ ~ho~in~'. .'~e~~ are addressed try $urr~

~'~

ti ?'. . , ..

-~?::~'~l~:;z, •.~. ~BtaC ~ ~T~~ ~ •~!'I~ ~Ai~~ ~flS~~V~1'tti'f 8~1l~. 1R~F61~~j/

" . • ,. ~ . • . . ~~,~~y,4, i=irb~~ is the ati~Ique tha# #hire is ~ #sic flf e~np~ric~ei data on a+rh~ch ~ to b~ise• b~nkrupct~y reform~' 3` ==~ ~ ~ ~ ~ recamrner~a~ons: ~ •'This 'is. ~ valid 'cx~que.: :i'o da~e.::#here have ~ been very few ~ studies on

° t 't . • ~~ :-, '.Ga~dtan c~►nsuxn~r.bgr~ cies~ ~th~ ~recer~ive etf~cts of paiticui~r poflcy cl~gioes, 4he acunamic .- ; .!' - ~. .~ 4 " L.~cnd~ ~oci~l bar~iets ~thst: rontr~tr#~ ~td b~Ecrt~ • aid ~~om~arat~ve analysis i~#i ott~i~r systems

~__ . . _~ •~ ~ ~ ~intemat~iiosia~y. 1'f~ere` have beef -~or~a q~aT~ta~ve s~tsc~a~ tt~ have ~ been. batty cr~ttqued by the.' , : ' J ~ ~ ~ :Prof~settfn.. Yet 1n the eas~nce cif att~mat~e end ~lpettsr c a., it is~ dii`~t~~ for the ~cast~at• a~t3server - - ,

-, ' .~ ?4, •~ as~e~ bo#t ttis siut~es and heir cwri~iques~ &.t Lamts tsf w~t~t they teti us aboirt tits ~ianktup .i. - . . . , the icy" ~ ~• ~ ~ ' ..,sy :-~ The ~PITF v+ras gtv~n nel~ther the tirn~ r~or resources to undertake comprehensiva~-

. j .} ~ ~ ~ ,: , research stud ~Sim€~ciy, white Industry Ada pt~ltcy .~rralysts have made ~ c+o~sider~bie . ~ . ' .r #forts to ~broadty cotssi~lt wi~#ti ~stetcehok~e~s -~ tie ne#vrm .process, ~ #s less than tsar whether ~ .

.: ; thsy ~teire ~ g~va:i sctfffc~e~nt' ~estswces ori~ the •pe~r~onai Msolvency side #o uncfsrtalc~ emp~r~cal .. - .: ~ t~~ear~tt h~to bo##i #~e Ca~a~n system and carnparati~e s}rsterns tntemattona[ly. Where this was .

= ~ _ - ~ ; dsstly a. ~o~rtiti~rtt dec~on; ~ tray be t the ~afession has a rote in either fcinding better.. ~ emp t ry~search on an amt's l~ngftt ~'is, o: }n p~s g tfis gov~nrn~nt~to uride~.a#ce•this.

Qne exampEe #S the debate r~garc~ng vvhettter 4r not,tftiere should be a pc~bticly funded processfor Judgmer~t~pro~# debt,~rs, these that h~sve assts ~nr~ income t ate e~csi~npt~ #rota se'~zure ~y

. cred~tora Thy ~febate durEng ttte ~ F~ process was whither to create a ~ separate regime 2haf• ~rovid~s ~n $ltem re to those debtat~ t#aa~ hug no asae~s that au~uu~d be ava~ab#e Ya sati~f}r

3? - . .

-. crsditars' claims bs~# a~i~ "require- r~e~ef ~~rom a~gress~e. ~~t., colgection: ~ifo~:. Thy ~~i'~

. ~ c Bred a~ sy~t~n ira wt~tch tfabfior~ w~utci be'r,~'van i~e~ front debt col4ection efforts ani~ then ~ . .

rmtrt~red for ~• ~uctended period to e~sut~ #Mat they remained witht~u#, ~n~eXetrtpt asse3s~.ar _~.

~ur~lus ;however, it re~~cted #h~• altering as ue~mariageah~e giver the ~mabilNy: of ~#he : .

. . -. , ~oo{~ta~on and to effec#iv~ maniicirirtg;j°T Tine point ~raiseci~ by the Pi'~'F were void; yet

. ~ ~e er~rtg reparts of #ho .PCY'~. cr~#cized •the i~c of. cons~der~on ~f attier a~te~aa~ire~. ~o

address ifi~s ~rota~err~:1°$ !n part. i crit~tts'v+~s~ a~nect at.a famed oppcsrturtky to rriore tu~arneiy

c:arrsic~er tie ~ of t#~ per~n~! ki as a~form of..consumer'`pra n, ~

. ~ ~ -tea! ~velfiare m~act~ni~m or ~ cr~edtta~'s reniedy,~ ar~i the i~i~;me to unCEa k~ the research to .

. ~ • -~_ #arm th1s~ d~sccdssE6nttcS p~ofe~sor Ramsay hay suggested ghat research.in the re#a~m~ process _ . . .

•. should #~v~ it ded r~sse~rrft Bup~at~tg ~om~ of die Central ~cor~ep~ af-pe~nal msohtertcy~taw;

rnic•~nalys~s of d~ifet~rot meets ~# b~rt~c y 1aw~aiit~ s~rr~i~ de~tarery; and da#2t ct~te~n , .

_ an'-both_4w~tic p~ on~and the c~rec~t ex~enence-of~ttiose~invatsned~-fi t#~e sysLetr~; ~luc ,~ri :~-.. ,,

ass+as~snt~! of.the s~~s or ~'aflu~e of the pr`op~ssl process ~r'rr~ tt has'b~, ~anacted,i'o .i.his

.. , ~S _s cr~iqu~' t~f the le~~ators mosre than tl'1~- Pte, in the s~'~se of t+esourr,~s t~racEed' aE# tie ~ ` .

prac$ss. tt is not~b~e mat ether public paHcy it~iath►~s hive Ind consit~ecably rfiore resources. d'srect~d ~t study before the ~at~ol~s are [mp~ert~d. H~ce per8anal ~banktuptc~ is the~p~or .its of o3~r pubic policy at:~s in t~mis~ of resear+ctr dotia~s•~ifoca#ed ~n p[tb~c°policy decisions,

:, ~, ~ ~ .-jus~~s-w~ttarre.tt~ts hisi~ricalty E~e~ atthe.~~a! gov~rttmetttl~rel.~ . ~ . f . " ' . .

' ~ ' ~-t'st°ri~atly,:.t~e~re +nip a pi~bfic~jr~~ed trc~s~ie• Q$~cY.~n G~nada ~a~ed ~~ F~er~l ~~isaivsnoy ~ - .t ~ ~ ~ ~ .. ''i'ru e Ag~artc3r ~~FlTAj, ~v~iic~ ~t~perat~d ~f~i. ~e.,ea~t.,;~'~7~.'e tui~it .~tRA~ ~~Y~.~'~980. ,

• • . . . . ~ - ~.V1►hY.it~was ~stra ed i~'sorrlewtiat ccrrteste~!•~nci 3hs~s.ar~e•~d'~vsrsa reci~v~ts, ic~c~ ig: trite -.. ~ ~. them was co~nc~'sn that ~ iegs~y ~ the : F1TA. was no# ~.Pro~~iY t~n~i~eiY.. ~!en.'the ~ s~t~o"Y

` .. ~ ~. .language; that trustees tAbb4ed the'fed~al ~over~ms~t to end.~'A and ma~e,~ cases iv thet

. :. _ privafe seCtar b~ause of a b~~~fi'tt~i there way ~a pr+cfft !o (~+e:made ~rorn .administering these,. . .tom; ar thst the ~eid~r~ mrr~nt, ~as~ ~~rt of ~ts:cverstl shNt t~,pt~vatizat~on, r~►as ewer to get `.. out of FtTA artd h~v~ the pth+ate r take av~er:.:F'!TA-w,as repte~ced by:.v~i~iia~ons o#:onihat was '.

. .: ._ .known as the"r+~#erra! progcatrc": "~~~ittatty.~under-t#iis prog~am,,d~btcrs.wautd st~bmft.a}?P~cattons ~ .to the C3S6. ~4n OSB off~er~v~roi~d pe~fomt B~Stxe intervtet~r..wi~h ih+~ debt+or end then refer

• - .. . the debtor an s~ ro~#io~a! ~ba~s #c~ the next Vustee on ~e r.~ferrat I~st' of, trustees that had agreed_ . _to handle these #~e~ ~ tithe orna~ t~-front #~e. ~va~ttuatty, #~►e scrae~iing ~~ war droPP+~ .

j0' P'~i'~ Rep~tt .sarpr~ nee 9~s ai 7ta-71. ' . • ~ _ . .. -` iaa T~fa Rm~y, rua~ivtu mit~`~issent, PIIF ~teport:'supnac. c~'H~•at 33: ~ : ~ ..

_ ~ t°~ Jb[d art 94. . .

~~

and the prac~ce~in most ~ Canada by X982 way ghat ~ppl ~~ss from c~ebtars ~er~ sirnp#y . . ;• _, ~ .

_ iumsti aver to the nex# truss an the •"rte#enat list°. ~ mayor ~robtem~ was_that~ t~ere~~were ~ . .

rsst ices cm the nurnber~ of trustees ~t~rad on the '~#errai "bra sar~e raglans,. ~fi~ch . , ~ .

. . gxornPt~d tha euciuded ~ da m that 1# was ~falr to only apvw sorr~e trustees on the Lists.

Ar~othe~' tsrn wss• tit the OSB~ o~ wary sper~ng en ~nurdinate asnatint of time s~mpty . ~ . ~ ~ •.

.r~c~i~rtg-~pi'~ca#iorts arx# #hen ft~rwar~d~g tte~m on to ~ s:. 'As a ca~isequ~ce;~ ire X985 car ~-

'~ 3~6. tti~ ~sn6ttup~r Asstststncs Progr~rn cartae Ito e#fect fottaw~g Iengfihy d~s~trsslvt~s. with 4t~e

~sociat~on and a ~o~nt commlt~e rnat3e ~ a~ QSB repass ~ s~~ind~trustees.:'At tfi~: '

4~rne. i~ +vas bei~ev~ed tha# the pro~grarn wvuid ordy be used:tiy a very smatt~nismbei~.of ~c~eb~rs.ar~~ ` .

#zat t~us~Dees vmrautd g~nera~y be ab~ tea h~ndEe ~ the vast m~}ority of ~ fps in the, fltst~ tnstancye,= a

belie€ fhbhas proven ~o be #tom c~ts~.'", ~ . ~ - ... ~ ": y

• ~ ~ 4~i~u~, mne ~s lsft i'~oine vncertatr~iy as #o v th~r or not ~ere~ is ,a problem of access to the • . '' . ~4

..ba~knsptay ~ystbtz~ 'hir~ the # w~-t~ ~ebi~rs. ~rrtiuttivety, ~re~ that ~8Q-859' ~oi ~0~ b~ttupts-

iia~t$'tro~ sut~ttt~ h~u;ama, ~ seems-fihai there r~ust.b~._ !°~t th~ OSB~re~oets'thaf•~ ~etves less

• ~ ~ ~_ than 5it)A cr .s urger #s Ban4truptcY A~si~t~u~ca Pr!agrarn each yeu anti ~~ ~~bte'to '~ d trustees t~

' - p~cm'aanktup#cy s~erv~c~s, act tom, •Ii#tfe-pr no cost r~here neoes - -~ .!t ~oes;R~t receive'.. ~ ..,.. «~rip~ir~s~ ~s pra~r~n has mot a~~sted...Qiv~ ,nQ RP1~arert, pr'ob errys•~a~ ~e daar~~o~-the •.

f.• ovens t~-ag~ricgr, Yt is poi surpr~smg t#~at~.:nore it~er+a~t, ~n th~.~ias not~gen~ratecL~i' 4fie``pr~ess. ..

~~ ~ ~ ~ ~ '~'h~~ ~iy ~ thaf a ~3c.o~ ~•pybt~c void ~bc~t-tk~e~e issued n~ rr~esri that~i ire ~: not an ;

'~ 4 ' ' ~cce~s~ er~y sftd e~asent empi~t-resear~ch orb w~l cam# maw. f As g cohseq~e ,"t1~e~debate

". ~. : ~itce~ p ~ on die .beds of deferent notmativ~a ~view,~ aa~ss' Sri Canada._~~~s ~ ~p~a~ed to a . .

dee r ui~ders#ari~ng of the ,prabte~ts .tf~t may_ exist No doi~t~+there~ wout~ ~~be ~probt~rns in- •.

coil ing~the data, ~iut they ate nat~Irtsunttvuniat~I~. Debtors i r~acM the lotiv pa~t~~in ~ soda{

.safety net end'up ~ the ~effa~ s~nstern. aid #h~.s h~h#y co~fieii regime vwould provide gsie~ source

_ - of gathesinQ ir~tom~stiott about d~bYars who have not d ~e ~nfct~tcjr'sj~#eTri. ,This ,

. ~ ' . v+rou~d rtQt generate data r9eg ~ tftose who have f~ten one further. through the, fast soci~!,, ..• saf~iy~ttet, but €# wo~~ #ae a star. ~ ~ ~ ~"• ~ ~ .. . ~ ~ ~ .

~- '1t~t~i~ is ths'r$s~or~ib t of p~o#eas~~.tn pus~tit~g fir study of these ~issi~s~ ~rc~r~t'a~ti other• .

interim' per~~tive, ~t v~ou~d ss,~ort ensuring the hest re#omn prc~~ess p`ciss~bte ~$r~d assist in ~. .

. .: .giving vok~ to "a ~`attge of ~trts whose f~rs~h~d. v~e~nrs: are no# currerrt~y :m the Qub~c .

damaart. ~ Ss~f-~rtite~st~y, supPart f~Y ,r~sea~roch may .substant~ fe~isge~S' o~vn~'prci#ession~ll

ex~~s~e ra~tltit de~tars to tee v~ whe~hsr at' r~o~ ittete are bars to tie systerrt. ~i#'ter w~~t €#

~ou1d altav~r #or mote ~Crformed e~ct~#on matdng taut ghe ap~rroP~t~ dots ~~! limitations ~f

. u i My tt~sazk~ to Ztt~ QSB f~ pinvid~atg this hider}► of ~ - ~ . .

~•,, ..• -~-' -.

,,, , ; _ ..

:, ~ ',.:,. as ir~c~v~rtcy vials aeitt tad .more cr~b~ity to the perception Qf trustees as

.:;;: • ~', :; .~ .. • ~ ;Prof~ss~als that ba{ar~ce cAvet~e trrt$ ~n tf~e bankruptcy end ~nsota~ency system.

T:~~~ • - .- `,. ~s~= . ~ ~'h~ tt~ tst~~r~igct of l~ .. of T'r s t~ fie. i~gi"s~'~r~*r ~. :._:

Yee

~r=y~~[y~~. ~~` :~ ~ `~ ~.'[ ,is.'s toucf~y submit ~i ~~rasofvency.p"rof onal~,~ ber, +~, .as~ na#~d, wave, trustees k~va1 ~ ~. ..

'~`-' ~-:~:~ erg co~nt~ess volunteer hours Sri ~e PiT'F, in~inrorOci~g~grotq~ Ire ~~ir prc~fess~or~~l organization

~ r ~'~ ~> ~~~~ ~.~~5$r~$f~8dE8~1 '. ~Oi1 Cf ~~~~Y~'3C~ C~t'~1~ PfCfi~SSi01~1$ {G~rBQ3~ ~t1~~'38~P ~ '

a~ ~' ~ ~.: die~ct service efforts tc c~nsu~er debtors. TF~se worts~ar~~aRrned at debating' ~rtd arriving at as _

~' ~~ ~ ~;+, ~ ' ~ , lirpa~i a cans~nsus as pe~ss~te abaut refoi~irs 'that w€oiald e the -transpar~r~r, access~bitity

'~ . ; ~~'= ~'~~ ~ - ;end ~4 etic y. of tt~ it racy end h~cPta~ficy sy$iGem. ~ ~ ~ '. • ~ ,

ti "~. -~'~:`~ t. -?axe i~ s.gr~a# diHero~i~e ~t~r1 Coiiii of Er~et~esf inhet~n# ~1.~fie pO~iCat r~fORn pro~~SS. _

:~'~''i"'``~'~4i* ~ ' ~~ " ~ a~'t~i: the l~or~ of .con Ct of~ iri rraa# in ~►e pt of ~ier~ons! ohret3cy [aw.. As ,acad8rttics~ wei 4Z: [~ ~K, ~~~r._ •~.~~,:~.:~~i~pe~ie~.rfe .conflicts' of trtt+ei+~st ~ ~~u'ty," ~~in" pr~rirmdtin~~= o4ir ~part~cu[~r natrfiative. ca~oeption cf ~.~ =~ ~~~ ~"'':.%~'r'-:~-~[t80~1t8f~/,t$W,..~i1 a~V$(:~ ~1~ I'3tOi'B: ~_ ~~0~8rSb@'t~tf'EC..tBt~ tOW8l1~S 6ftJdj/E~..~$.S~f'St@~,

r~,~ J~~~',~, ~ ~~ ``~;; ~, ~s~jd. fri suc~g r~~ ~re~a~of ~~tion 4i ~tt'~8ot~tces~arid pubic po~l.de~aate should direct tov~tards.-; ,;:~, ..Csy';~ ~•..,: art -'~ . '! :: _ `~ ~' ;r~ .. •'~ •: ~ .v' '. - '._ - .. .' '. s .. " ~ 7 i. :+.jY~ : ritt.~,q~ ~ ; ~? :. <i ~,~ ~tttQr4i (~~Tj~„ (~g A. (~p~[1~e a~.: ~;.~f~st d-,o#her p~ofess~ortats . ~rnitariy face

rat. ~~~i>it ,.~~a`~:~~„~~~YV~{f/W ,Yf ~+'~W~Gfii••~• s}~r'~'~ N~V~ ri7~ •~V V~{O ~.~~•~iY~1V~~i ~~ WYfV~~ + .

`t 1 ~ L~l'~ y •~~3,,.{',~~j ►F~'7 ~'..~~ _ ~~ LV• _ Ar ! ' ~ •M!V ' •• !~ ~~7'. ~ : V~i~fi •Q~~J~.. ~ M~~~, ~f ~ ~sti~

~~„-, ~.i'^ ^`~ jf .i.~ ~tiTf~111iKi~ Si►{ N►1.~~~tQ~~W LdlV~ 6ii ,. .' W iN~~• ~ PW~ lf7~ •

,~~:. rt••+✓i ~~t:• 'T,i t~/w`!~ t9~sW ~•.~V7 •_ r H0 M~~ ~• 6Y~•6~i1~/e~.~V ~ ~~~f~/~;41~M b a~~ ~ - .~: t - `: • thr~ditgh .the ~iss~es. vv#th other etio rs~fo ~ k ti~•e~proFr~ete ba~lar~ 1n.tha . kruptcy and

.~' ~'~~'` .L ~ M ~ i , . -..f ~rsr~cy sy m: ~e chal~et►ge is ~t~v ta'tin~aden the c~tment ~~pr~seiztation•at~~he`tab►te; while:',.' .'" •.. - ;:~_'}s:'f . -r~t:~sgrdzing both th~~va~u~bt~`coiitiibu~on end #~ ~vteritlal.cor~i~~that the. prof o~ brim to

EV~/~ Y~A•~0{ 6~ ~ ~1 { [~ ~~~~ Vh6VM' lfii~YO~ Y1 i4~V ~ ~ ~V1a .N~iYW~iaS~~~QO~s .. ..

. . : ~ .. ~ co~is#d~r the t~s of ttte e ~t the~persQ.n~l t~an#Erup~cy. pr+~ss "~- to parG~u~ar. inrhether the~. . , ~urrer~t ~ot~ ~ ~ir~tutt~aneot~s3y ii~g cout~efting ter debtor end .~cti ~s represertts~ve of. ... _ j

e ~ .. :.ifi~r credi~ars is #~t~ best r~ s of'~airld~n~~sgrv~c~ ~o a pa lariy vuln~abte popt~~ior~.,'s ~s '- . . :. -..Professor R$msay r:otec~_tn his d~s~rtit, ~+vh~h~rtti~ poY~t~tiat c~sn rs~ of such a cocgflict o1 interest

..are o gh~d by the re~uciidn in s~~~» co~ts~.tn.the pr+~cessi~g a~ ~ankr~tcies is an

"~ .supra. aot~ 1{~ IIt 93: Zg . sttpr4 r l~.' at 9°4.

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~rt:;~. .

. ~;~~

':~.•:-~.=: .'..: . ~~prss8ntatiare cmun~l~ ~r same ~m~ir~c.~l surv~ ~iticism~ ~~u~d -b~~ ~s~a~~ ~s a. i~vv~

~~;~ :. .~ ~. ,-,,~sp~# o~ ttie gig t~. n~R be~alse a~ademi~ any ~ttt~c ~r~p rrt.t~. ~e ~f c~nsvrry~r debtors.,. .r~~'n ~4" ,,}t.=

1 :Jam. ,.>. ..~t•~~'

~~:><~ .~;_: ~ . tt~~t 4c~u~'t~es, ,boat bsr~u8~ ~ a s ett; ~t hers PtOvk~ t~s a~ttt ~.~~1~r d chick ~~n the

~h•-"'~ ~~'•' ~ , . . . ' a~ oclr viers 4fitett'mre ~Yh~r~i~e - d .4 e t ~rotaci sett-~nt~rost. . .:,;~u ~

s;~ .:~: ~~~ ~; ~ ~ -~ 'Ttt~. ssiar~ ~baut 2~ t lafier~. r~orrr~ g~ce~; ~v~se~e ~ortf[~s of, fnt~rc~st i~hc~re~~'for alI .

,~ " "= ~. ~~`' 'F~r n4~ ~n.tt~ praa~~~.~ very t~ff~rent ~r~n~th~ ( ~ oft l ofi interest [e~ the prate o~

r ' ~ . ti ' ' ~~$~t18~ ~t&a~V ~~li~ ~i ~'4~ ~4 y~P1 ~ltC ~ji ~tY1~tt~ ~OI"9 ' ~'E~~ t ~

~€~" ~ '~ - =~f; ~ Leti~d ~, ~h~ c~aa~nt e~#~m.~~ te. ~ 1IVtu v~r one's ~Rn~tiv~~ vte~ ~~ but tt~ .grmti~rth

~~~~' ~rF `~~>~ =~f={~rsort~~ ~y ~„e a ~pro~ess pQr#or~ed~by~priva#~ ~prof ior~l~;=4his e~ras~~..c~aaic~.

;~'~ ~~C~;;; <'? .-? ~- " <'~i'~d~~ ~~ra : ;~ ~ C~$o~1..~ _ ITt ~ ,a. "i~~ ~ l~~it~ri '' t0 : f~1~ • d~a~e. abQiat

~~ ~~,.~'` ~,:,- ><:.~~~~ r ~h~r~~ to.bp ~ rrso~e fun~ms~t~tf k of~ ~ ~jr rep, #~r~ ~ ~ ~~ar~Xe sit of,R ~ : - ~ ~ a:y~~~ }~ -~-~ 1> .rg oc~-about.~vttat~te~P!'€n ~~ Gur~rrt sys~in~ tt~st -~tf ily sr~d i~r~}~ out corrtl'scts~

~~;: ~:, ~~~~:~'=~~:~b~ in4 . M~r~ them ls_. m~ ~~r~it:~l clams. ii ~-#t~.~~ria ~~ng ecf ~~~ uient ~~c~i~yi ~7-~ ' {rim ~.a~- ' ~ ~ ~ `t

~ ~ ~' •' • ; , r ... `

_~,,;~.~>?.:~: ~`=~~:~ ~c~ed rn ihead~e~ vr~q ~ tiny. ~ti tr# s ~~ fou~~3 #~;h~ve eng~g~d

~r ~ {~'~~r ,~ sc~:~~~r ;,~J,jiCT1~P'O~ OJa~f .. ~9 ~HR~ ~~b~ ~ r6~30t'~S~ $3~~ Itl • ~3~ C~~CSt~@

~ f~ <~r ~" ~~ ~ ~~vv~ •~~r~y. b~eri::34~4Q ~ .. of .~tni -. t uct, ~ay, t~.t ~irt ~~r~~ y~ a.d~°b a# a!I

:; ~.: ;_,. ~.z:_ ,`this~n, c~dtz~~tas s~tgeci.fnom~~i~vrlega~ ~ roc:o~dkeepin~to-en ~~enau~~b~r~~ch

:.~ • - ;~- ~, .~~~P~r-~ i99~~ c~~r ~ttie ~ ie~ster c~i~ ~~~ y .~~ ~n~t~'~~~t~ens~ :e~~der .t~a~ ~ 8/A. Ci~en ~e

f ~ ~ .;° ~ ;:. ~ ~.. ~ ~lit#c~t natiars~ at tt~ ~ ao~, ~ the qtr lster rist~a4#~~~ ~ -~o _-~c~ :~~_~cot~rx~~~ rs~ ~og the:~ ~ ~'..

~' ~~ ; .. - up~r~ntencfe~ of B~nlceu y ~b~ r~eha~ ~ic: ~' ~ec~us~• o~ ris~t ,~ ~tttb[i~ ~ pe~ep~on ~ ih~t# 4he:-~: ~. ..

:~ ~ '- ;T'. ' .~~",.~-~ PVi~nister ~ ~a4ti~ tna~ees lode tom' fiveshood. ~n 1892 that poor ~r~s vested ~tfi ~e

. ' :~,<": _ .r:.Sct~~rlattsndersi~ ~ ~Mie~hmi~ti~vts p+~are-per ~n pig ~o Mv~ti to ~~~ uvh~c~ ~~pPtop ,rescind the

. ~ ~ ~ ~ •:~ ~'~ n~ ;Thy St~~ . ~ c~nc3~a.~ a ~ f~rs~ ~#" '~s~ltit~ra to -the. -tr~~~ o~

. ~ ~ . ~ . - - . ~ '. ~.c p~ conduct.. art r±a~ivitig ~ ~atr~l~rat, ~t c~ot3cs~ w~i 8he ~c~~fi~i t~

. ~ ~~~ tdet~e~inin~.the v~.tk~ c~ cosxt~l~€n!, or e K~is are erect of-ttie, Blf4 not ucad~rstor~ by the

. ~. .- ~_ ~ - :~ ° b#or v~. cr tom# ~s ~cesr~t~irt~g. ft tt~eri t~~cac~ ~ at ~ ~ e r v3irrtic~~ pr~ess~ w3~ ate'

.. .. ~ .. -. ~ - ~ sty ~rrd .atte , corrt~~a€e~~nt, .tr~ng 4o re~alve Yr+e c~m~#~ic~~. ~ ~ to ~ rr~o~t c~~rs, ° rn~ter is

t~~i~d . at ghat ~ ~a~rt. Vetere ~i~ dip@rt~ende~nt d~term(s~~s ' t~ia~ ~h~re_ is : ~n ~~~ o~

- ~ s►a~JUiiW ~rV~~ i 4i ~Ui K.SYLL~ GO e~sV~R ~ ~~ SIiB ~LY~t~r6ita~ iriit L~

•- : ' i n ~1~ 't9f S~u risa ezi~ t~ ~1~sp~cy.Stt cS. o~ $~ wig ~ta~z0r. .'

37 ~ ~.

cons~rvattisy yes tr~ert~ ~a rime. ~ #n: cxises of fraud ar is~e~ s~ria.~s rn~sconduct, it. ... - prose ss. the #ea~e~ end undertakes pt~fes~tvna~ ~sc3p~inar}+ ac~ian.. ~~i intitt~ due pmcess

. . pco~ectians ~ per. ~ ~ ~ : . . ~ ~ ~ .

Qne of fihs Sc~r~ntett=l~nt's enfot~c:~tnerai ~tr~~s to the -past y.~arr was td ~ ident~#y a!i those ,

. #n~stees-vat g~eaisr 4~iari 13°k ~f-esters ~utstand~ng foP mot+ 4tu~ ~~$ . }rears, acid rsc~u~rittg .,.. ~tt~c~t to p~ef~ it~deper~fent b~rsk ver~k~cn of money held in 8n~st.' .tt fQu~d~89 szii~i~t~S~$.

. , ~ 1Athlt~ tfii~r~ s tf~r~ble. c~p~€ttt- ~y fee tc~ rnt~ity. about .tt~e prictities' ~of ti°ie.

~aeiiisf~rident In ~pureu~g t s~ ~usteas, the ~fianat~ .was. one of "triage" #y~e id~nti~ica~on of ~ ~ ~ .

. pens. The vuper~nter~fenfs hid found that is~ ~,l~ :the .$aud .. ::... ,~ . ~ .~t:a~s ~o c~ats~ a c~rnmoc~

. ~ ~ therm v~ias d~'€aiiuhe ~o case in~~a.t&n~ly rn~nnes. ; In s~rne~a~se's,:th~r~.hau! also ~er~ . - `,;•. ,

. ~e~~! ta~ta nQ Frith ~barik rnc~r+ds._ Using the f~ of the .'i5°!o_ of outstandirtig estates ~as are. .

inv~stig~#~v~ foal ~r fraud to the system, the Su~rir~n~nt was abbe to verify thgi none a~,the 99

. . trust inv~l~d had ens d @n ~rat~dut~rrt activity. ~ience, it vowed t#tts~ ire ti~t#ioe as~focusi~g ~,

ori•h her risk s~turatlaa:s ~s a prev ' o; es~fy d+ m~asut~a:. _ , , ,

_ _As ~' nt►~ed : ~in dart !; ~ the ~ Ser~ts~ niftee t~s .ee~omtnenc~~ bticreas~d " cddificafiibri of

E .. • _ :pirofe~sionat ~ iii t#~e ~l~t: ~in adt~t~ri to.the.eth~s c:a~l~ Fumar~tfx~~rt$hrirt~t3`~itt ~tianlir~rptcy.. ~ . ~ : ~ reguta~oa~s, frisc~hiet~y ~profes that , at?a~. CAT~tP members si~e~~.:~ubj~ct ~o ~~ noes of . ~ ~ . ,

' ~ - profi~ssivrial~ _conduct arid--~~: a#. Ar~f~iort~f pr~c~e that ~are.~ 1nixeas~rig~y. inpnitored.. .~ - : .Ci4tRE' ti~ ~re~ed'a ~j m ~~.e~ampiair~ts ~pc~in9 and sa~ic#ia~~for ~merrib~ra~tti~t,~c3o. not

•~ eorifoirm ~ ~~ E~s~ pr~etiae'-st~dard~. ~~s-.a:.Pr+of On. .it~ pcat~ficty . r~tirts ~on tt~' ~c os~ion of•. i~isar~gs relating ta'a~eged m~niluct and the oubcc~ri~e~. 'ohs culty~ is that C/4!R!~'s ply, .

. . _.ay~it~bte. ~C~a~ for m~~ t [s to t€~#c~ ~v~ty .membetst~ip: and the ~ ftz~paa~ried ~rt~st~e• fr~qu lY quits the ~tton before~ttniscflndt~t i~ fully Ittves~ga~ti:or $t~tdlcated. ~ , ~ ~ .

Li, . .~ ~ Thy l cif. ,- _ ' . _ - ~ ~ _ ' . ~ .~ ~ - .~ ~ • " 1~

l

_ ~ /ono# ~ri~qu~ a# diase~rting members of~fhe ~'iTF"w~s~~the amauntrt~f private.fees_. ed by .. ~ #~tsfiees to adr~i #er ~ ~n~ or p i`he issue- o~ trustee ~~es pr+esent~ a 4~omy .

.. ~t Ro~nf. h~o# bar it ts'na#'fm .po7tant, but be~suse th~r~e is a tack.o# good data on.~meds~!!y the issues and che~lenges ~n r~s~,~t o#~the fees tacos. 'Thine ~+e historical reasons why .

• - .Y~he sd~n' n of the ~ ~ i~ r~alcen•bYpriv~te pro# d~n~ls, r~a~or~s tftatar+~ ~s scape Qf th#s r, beat ~fi~Ch r~fl~#- ~ rnous by. tedera~ tsg~s~~rtor~ ~~ privateasps of #~ pub1EC de[iv~ry ~s tavrt. ~daving made that choice, E~ dt~s ~ssm counter-

' ~ i ~~t fees should be an ,green that ~a oE~~ que~tion-~af pri~ra~e delivery ai the

s • ,`; '

:.S ..

-T1.~~ . .. ~ . s~nr~ce his .coerr~ Wider !~#f#e scri~t~ny i~~ recant ys' Le~vir~g _ ~ssid~; tt'~ :are two

-r:~:;,1 ~t:: _ .` ~SSUBS r~g~t~irP1~ fe~S. ' . _ ~.

" `~` ,: . -- . ~. ~t ~ impo3tsnt bvs be paid faEr c~ar~;p~r~s~on for their wflr~C. The~truste~ h~s~a first

°~; ~~` ~'~ ;`; . _ : + :; ~rn, fbr paym~r~t of ~~fees ar~d costs of.a vn a# t~ Mate. While es~mates var~r~ ~e .

..'~~''~ ' ~q: :;1: { ' '- " - ,~Vei'SQ~'C017SLJ~'t?Qf ~b8T4~Crt1~CI~("C~'t~~@ OS 8t70lt~' $' ,~. Ifil P C8$@S, ~7fS $~@ ~8 11Ot }~i ~ fit@

~~` ~~~.~:v°.~ ~ ~:~:~ ~ en ! of tf~e ~p . ~R~fier, wire ~~he~ t~ta~rL ~S ~mpfoy~; it is fr~quentSy. r~i ~n

''',''~'''' : •.~~Ut10P1.$.ftOfTt',It8~88.tfU!#31~'~'19 T~87110t~"! ~l i{~ 8c4 All Ett;1~I~SC~I'~ bAt1kR~~. ~t~t3"i$j/.~~D

. -t ~'~~'.- ~ ~+s_,p~eid as a per+ceritage ~ proc+~ee~ tea +~d on a ~ ~ ttit-portion of the e#s~t n are~i .:{i

!•'S:•'; .~' ~ ~~.•~ :)Y`i'p ;' ..':: ~. _ ~ ~ _ ,

3~}_w '~'~.~~~.;; :...: :.~~ .'n~a-e~c~mpt. ~p tfi~t vwrene ~~rt' of . '.c~#~ts ~ the _ -Paym~n# ~atso caenes

~; "~"~'' ~ ': t..'-:. ;. ,: ;f~R~ pry- aid ~ ~tt~•fil~ttg ~e ia~t~ 9 Or CST• ~i0 8 ma3i~'tUm). :7i~tS ie v8~t]~ ##gat

;~R .. •~3~ : •~ ~::~,~= r ~rois~~l ..ei~nae :to 4fi8- c~ditors ff they v~re► ~ ~futiy -ie~tas.-oR t~ir.. cia~rn"s► not t~ ~ debtor, an

it t J.!,~~~ ~ R ~ 4

t ~ ~ ~j;~: ~r .>'~~' • y :•7Y~e~ gr~a r chalierig~ i~.'thosa. vvha ire: ctnamplQyed. ~ .on ~velgare or other, soc~al~'assi~arice, .~,'; :~" ~'r:. ~ ~ _-~;;~; ~ " re is nor surpfus irtcvrr~e nor ass~f~: Wh~e m$ny.' have ~ ~ cortclud~d t4~at .these

~~'°-'~"~=; ~ - ,: ~d ~ are.~udgment pYbof acid heiti:~ dog ii~~ need do .gQ :tiapkrupt, it ~Is rtot c1~; that there is- r~ ; :rr

-~, ✓ ~~ ~, ~t, ~ .- .~,~~-v ir'~~r fntw;;r,a~an ~~r', :~ t' :ta~:gj~t reef from aggr~ssiv~ .obi c~8t~ction

_ `. ;:., , -}~' :Y. ~~~;;~: ~¢~ t~s:, ~ T ~ is}~ further°tssue~vv~iere ~de~tos~~v~~~o'botravv~from Witty or frtend~ in ore~er~ta .

' ~ ~' ' ~~' ' •~~:f ~ ' - a~~ #or'~e l~k+ruptay ~Ci ;'s'p~'t~af~ias ~s#rtbuthr~ ~~ort~er~tset~c~S, fir pet~iis #had ors

..` "~;: ;~_ ~~;rirtt it~y~tlt; ttue to tfie'unave~b~[ttyr'o~=~°pt dy c ver~d~.~r~rice: #te f#nan~~11~ ~is~tressed•. ~: _'r, .';s:. ~~~/,It'1$~1'0 • I~t.~S~~l@ fl~0'f'W~i@Tt41d~ ~$~tOL~ @~1CQU18,9@.$f11~ tjl~3~ O~ P$3/fY18(lt'' ~• .. ~.hM. •k' l4' Ste- O r

': _ •. ....

._~:~f ~ ' . ~ ~ Their~a ti~d'E~eti" a •whereby to~i:: ~ . ,. .... ~ ~ ~ that paymei°~s fore costs a~f

. ;' ~ ~ - trus#ee fees ar~d admini~tian w~outd cvi~~e to b~ mods Wit-discharge v~re noti `, ....

- . :• ~ suf~c~ant sets #o cover the ttx~ssta How~var, tae court In 8er#ze1+~lte t~efd #jai such agr~ernents

•; ; ~ . ~ ~ .'v~ere~ not ~ erifvr+c~abte. Tf~ PiTF cvnc~ded that this ~ru#ng timi#sd the flexlh~icy of payment4 ~. •. ' ~

~~ : ~ . - ~ ~ arrangements b~tweet~ trues end bankn~tts and thus reduced ~e'ceefainty that trustee~.v~auid•T ,•-

_ ' . , . ~` iec~iti/a' fait' -~rid~` ed~quRte~ compe~s~tion ~for..ti~ sew they „g ft r~mmr~~nded

. , . - ~ ~- acrt~rti~i~g t~r~ BIA--tty avow :#rusts to er~ter into vafur►tarY payment agreemea~i#s ~+rith tianittupts '"i~irh~' ~o ~ tto't have ~-~rpitts :Mme, with a t~~uig ot~ #h~. atom ~ of grvst~ fps ~ an~i other

" . ~ _ aura ~er~ costs- of b~t~la~ugs3;~y. ~ Bch wa~~d atlow the., ban4Crup~t to ~~1 h~v~ a~ vtnatic. ~ :c~tschat ~n ~a t~t'ttely f~i'~1~n, -taut ~t#~+t frteste~s .i~.;re~eiv~ their s grid o~sts'~D~. .tt fiuctt~

~ ra tte Ber[he1e~.~ 1999 , ! I C Bat. {~'~. ~17~ U.~..R. (4~ 577 ~(AFi C.A.k. . ~ • ~ .' ~o PITF"R~omct, supr~r. c~c~ ~6► st ~3, ~ ~ ~ .

.. , ~ ~ ca d - - ~ '- .

J

~c~xncn~nafsd 'E#~at ~iac~a ggrserrier~~s ~vcutd .noi be perim~+~d : ~ .~a~hfp cases.. The

~om~n~end~~rt has been cxfi~~l~ed a~ o~ ty tt? the fresh. stun ptinc~ple .bemuse bankrupts -• .

m fan ptcy wfi~h post-~chacg~~pay~ns~t obt~$at~oets. •This ~s ~ ~trast to•tt~ view . .

t ~vera! titm ~ do~ara ofi post-disdtar~e payment obl3ga~~tiiong t~ trustees is a smatl price #or

.qty of the motor #~ ort~rous dept ob~a~o~s ~ end er►~~rge #rfom bartlt3~ptcy wiih a . .

-. , • .. ~ fresh start. .Both s~3a~ of this debate have no# yet been adequst~iy addressed by I~gis~ative

po~c~r m~kets. Ors the one hand, cietay~rtg discharge t#~es In ordsr~'io.~ecine' payment'r

_ " _ .. - ci~.sedvant~gss s~t~symer bankn~p~s ~n ih~r ~rec~t ~€n~ for a tarig~r ~seia~f of #erne;. This is a.

. - ~ seclous prejudice 't4 tirr~ef~ .ai~ess to banktu~~cy► discharge: {3n _fhw.other-fiant~,~, past-~is~harge ~ ~. "

. _ _ • ,, R~S~ent.o~ga#ions to could Elsa Impede the fresh~sta~rt pr~cipie. atthoragh,tk~i~~cie~~nds' on ~i~ture of• tire' payme3tts and the . ~1 end .other .circccit'r~sta~ces~:s~i the ~ bankrupt. ,

~ ~ ~~ ~oreo~er. sa~uaiads #aY hardshtp.c;as~s la R~ r'9~ ~PaY~`.~ents n$ed to_ be ohr~}+sta(ltxed; . ~ -.: . keg ~ s:. prooe"ss for' "~ealfng with• damns of • herdsf~. 'Them is at~o the . quesdar3 ~ of .the

. d~str~hati~ve . cor~sequenc~ o~ ask~rt~ tru~tee~s~ to ~#ar'9u. paYmettts for.serv~es r~ndared absent af _ . . . ~o~~rttcu► tc. ~ bf, c~pens~t€on: Rio, a#hsr prof aion v~ic~~d : E~ masked '#a ~minafe: ar.~{ - reduces t~s #or services ~Fom~,ed~ lncbsdfrtg those ds~ng with, ~ulrterable }~vpt~la~~s' such ~s

. ~ . ~n faniiEy ~tw,` poi► !aw and d~blliYy la~r-tunle~ss the I$wy~r had vclun#arily-agreed fo' p ~rfomti. . : : • ,pro tr~no vvdrk ~or ec~~aed ~o~ work weer. a~ _6~gaj aid • fee strucbure}r Trustees stto~i~ld be "paid., .

~+~~son~bie #ee~ far they v~rork they per~orsri: . • _

• ~ ~. . . . 'i"h~ ~iseue is m~ t~i~#ex t#~i. simpty. ~~ eta .cif pos#-c~sc~arge~pajrtri.~rits~ and ~i~; fresh start . e. ~ . . '. ~. ~ ~ ~rir~ci~4e. i€the pot~cy ecthte is ~csc~ss fio bankruptcy•s~rv~ces. t~mety ~'id~aac$ss~fe discharge. . , , • . .

. ' , ~ • ~ and tstir c~rnpensa#iort to des for providing a p~btic sen~€ce,'shou(d ~e govemm~rri~ s#~ up to ".. . . :.. . . _ . ~ . ~ ti~a ~a~ and pay tru~staes far. any short #~i ~in fees due to the ~ d~tar's hack of sur~ilu~ Income. ~~

' 'thus. using-the ta~c.t a►.to r+~~ribt~~ia: waafth.bY. 9 ~Pts a~ce$s to earlier c~h~a and~re~sh star? ~ Sho~1d there be, a~pub~ic $erv~c.~e~ offered to such c~se+s; i.e. ~a i~c°triist~e~avaitabEe. . .. . • .

_ .. ~► pra~ss b~lcn r vv~se~ tt~er.~ ~a _ no surplus iacxu~e or assets? GaAs to- aclt~t a' hef-fey or - , r . ` "~tcin~fee~~tibffc sgrsb~m are U r ~s to t#~r possible efficacy. absent e~nptrlc~l~St~sd~ bf ~wttrether

• i~~nit such s}t~te~s ~rt~y cxe~te gr~~tsr : #~ rehal~~tit,~tion to~o~tier jitnsd~dtons -thin ~. ~ ~ ~ ca~nrent car~ad~an sys~►rn. ~Vforeover, ~t fs ur~cEe~r t~iat there~~routti be any ~potiticai v+n`~ ~to che~,gs

. ~ - the am~er~t aysism, wh+~n th~a. s~sr~reys that haws begin undesta~cen~ indit ate ~a cans~d~rable t~~e! ~fsaYlsfac~i~tt with trustees' ~ervic~s. 11Utta# ~is tfte t~rtkte,~Ys experieetce ~n the #ee~ pt~e~.s?Si~talcf the cre~i# industry ts~ ~h~rged apt ex~r~ence-rated ~a:if# ghat wtisul~}.fi~f ibis cc~np~rtsa~ot~

. - ' g ~ r~csc~ as ~sfiraYe 3ndc~r~► +does fog ~ the t~tk~xs' c~npensa~or~ systems? t-ia~g made thechoi~:e to ds~ver s va.€u~b~ pia service (bar~kru~ptCy ~d p~opa~i ~ioces~es~ pmt~tely, haw isr ~. 'i::, ~ a • s s = -t.8 t •. • - • • ~ -i:. ~ "_.. - .. s v, ... s f,. ► ~ s a

r

,~~~~' "

~W ':~~'~; `. _lr ~

,L~.a+v~~ t'3 ~ ~t~,E~{ ~ ~L~E ~~~~1 ~' ~~T~'* l ~1 ti'~ ~ l~R~ i ii.ei~3~7 ~~~ ~~ f 1~..

~r,~ th~i #h~ r ~ht r~fc~ c a~e~ ti ~i , rr~~~ ~v~ bes~ t tt~~ ~arr~awlyE fs~~r~n,~, , ~.e 11:;.

# t~ ~ ''~ad g~y~~ #~t~' ~ ► ~ fia€ fvr ~he~ar # ir.,~ .~»?~=. _. r . . .

~ h .

~s.,, ~ Z '` j.

~ ~~~ ~ ~ 4 ~ y'• at~~f~. jt~~ fee- ire i~ t ae ~i~e~rl u+~ of ~~ sag ~~ y+ #h ~r~c i~tt~~~ _:, ~~ f ~~r ~ { `~~ ` : { i . ~ua~ty ~r~i°s. ~v 'r.~i r~Ce ~sar~d : d t~# ~gen+~. ~ • 1~~ ~ b~r~ sam~8 ~s €~ i~~eta~x ~: . t 3 ,, - T~}8 f3t'f~ t~,'~~~i1"1f3 #~'~ ''~'~@ ~'S#,it~8 ~P'~~K77~f~~"i ~i~ t~~E`~+! ~~~ts~t~'t~ ~''~'t s ~ii"!t~ ~l3~i?~~l i43 31

~?~ ~F~ ~, '; +Ci` ~~~s `~ ~~3 ~cs'W ~tts~I r : ~~+~~t1 _~~'kr ~~~r ~r.~~t3 y ~'leir"~ `=' ~ s~rr~ s. ~ ~r~ + try inn; o~ C~v~ aia ate# ~t~~~,~c~s re~e+ ~ rt~~y a Via'w `='~~ ~s~ ~ tmpr~s~csr`i ~ia~th8 tru~'t,~ ~s ~ to h+e~ ~~ fi r.. r . r~o ~~ory ~~ e. ts~

~~~~,. s.:~ 'C~l~~ . '~Ct ~'B,~O !C1~'1~''~t? iC2 ~ ~t'i.: ~~.+'~l~~i..~~ t$ '#}~ ~"iA~ i°t?ti~t~;fit, Y, f _ ~r, , - <>~ ~, :, '" - . ..

7 -.~k,?,~~:' v f ~ '~ ~~'~?'~~~~'~~~ g~9~~'I~ '1~~~~ ''~ ~l.~r~'1 ~.t ~ C~'~~~t~E'tt~3~I t ~a"`~t3 ' tt

~-`.; ` '' at ~ ~t~~I1~, > ~ l~ftt~~ ~t'~1 ~ ~'C# 1 ~i ~#i't '~E~9 •!~"1+t }~~; ,C~~'~'t 1~t~~`1. ~"1~S t~7~i~~1 i?~t

. ;fir, ;~='~ ' ~ ~b~-~'~e,~s~'t~ ~g '-fit i Ft~~, ~C~W 'pr~~#,et~ #tom i#~~l~!`-.'~~.e,~~t'V~ ti+~~ +~ yb~ trust art ~'~ ~~ ~` ~. . '~~ii ~ X 3161. F~Y'~i~L 'Viws' 116a~ ii f+➢N ~ ~Tii~~~ ~i ~YL7 ~'~?. ~Yif~i,V~ •4'V !'SIT~liw'~

~ ~~'~ ~ y*'.,iy ~~i'!~~. 'id FS~wV~~'~'~ 4~~fa. R~, CV~~~4R~' ~Pii~Li7~W~

• ~ `,

f. .. ~-f

~~ 5 ~ ~r~'. . S ~4 },r~#~~~~Nti ^~. ~ r~ ~ . ~~iS~ R~Fx~ ~~~~ i ~J iF~iF~? L~~ V~°'M3y~i~ 6i~

_ ~ '~j ~ =z~3~A`,~'d-,~~ '!~`t~t~ +~? "#i~ t om• flt7lt~,t t r~ ~ $~!1`'E?~~~~- ~+ti~tt~ , .#~u~

• ~ ~ ... ~~k~~ s t~ tii~'~t~ y~ ~ e't r ~~: f ~~e~i ~ n~+~ was c ~ar~ wt~utd ~1~ .~~ e 1 A~~

c far`.ac s th~~ s r~~ r+ e rye ~~,~- u~ R ~ ~c~ ~ t Ott;X t ~ .. y }as~d•,r, ~t ~trt~+~~s~t~ ra t '~k #~~:~` ~~s r~s~tt t~ca~t - ~",~i~ t~ ,fc~r;•r . .' ~, a #~~ €~~ ~na r~. "~ Rl"~'~' ~rrrr~e~ tl ~~r~~g e a~pc h t#~i~ ~~ ~Y~P +~~ng

.

,~~ ~ ~S ~r~ t~ ~irr~n~ ~ tc o~~3' ~tt~ri '-~af's~k~ .~~~_~~ t :r~sde ~

:tom aft .~ E ct~:r t#i ~rpl~s ~trt~ ~~re +ci~~s+ Y c~. t~s Ott a't~r~ ~1~

,- ~ ~ - - ~ ,

` ~` ~~ Wit, su rr~i, ~t~ ~a sit - - - -

-" t~..~

. i. ..~1,.'::

-

.'.r c.~.

• '.} .:.`~'~~ .. •1f~~ CiQ ~ il~Si~iS.l~. Q~~ Yti7 lira ~~~fiil4i~3~ ~d ~{~it~8~ G~ils'iRLiV. ~~ ~ ~. ~~. f •

.. "

~'.j~"`~~- ~ ~ ~ ~ .~s ~~ted by the ~k' ~f~ surpt~s Jctcarne.~t th~ t maJasirty, ~et~a~tat ~ ~y is rio longer

''' ~~o1r~ do this dens a~~ peQp~ ~f #t ever w~sj.. 1n~cr~asin~y cient~s8s, doctors and otpier

~ ~ -~ .prafesstot~s sre n~ tht~tt3gh Pte. t~ank~~•pra~ss. 6~V~a~e~ they ~rtayr~ be: s~~ousfy over-yt~t:`~~:~f:-0 ~4 - , iJ~

~,~~''r ~;=> ~r~:• ~~levarag~d. ~

In #he~N cretl~t arrartgerner~is;- t#~'.c itY. to. ~1te surpt~as payyn~ds #s rneasurabty

. ;;:~s ~~:t:` ;': ~ '. ~ bat~t~&~ ~fhei~ g~~tg fvr'wand -~14o~e. ean~g ~ ~tY _ is . tare: to such case, siarpllus

~ ; ~~~, ~'` - ..:~c."-.

~~ ~ ~_~he

tflake a gr8~t'd~l ~# ~er~ss std tt#e •trt~t~e is no# facing fine s~rne eihic~l issue ~s far

;~~_"':~.~ ~.

.

debt~P witft~r~argfm~! ~urpiit~ an~ame who reat~r in~y be.dept~ved of a~#resh~st~ri to ~is•or her

;:. x, ~ ' ~~ ~ . ~ ~h'~utctal a#fairs. 1Nh~t~ sew aa~an sr~ pr~ut~c.~al 4o the fe~h start Of ~~ b~krt~pt #h~

.rf~~~'~ ~ ~ tivsfee- en.~y-hav+~ a.can~ict in press~rag for suc[~ a~em~rrts grid there shotd~ ~e a m~chari6sm~ .

~~ {~'~`-: ~~'"~.~' • ~ihat=;fix : , '`a~v`.-~. eerves:a~. an acocstntsb~liiy wreck c~rf pos!-dlsc~arge a~an~emBnts ~f ttt~y ue'~f{owed under. . .:;~ ~ti =~-~r-. ~ , ~ :_:

~ ~- arrier ~ Blr~: ~nforma~on on ~e ~co~e. o~~~c~rn~ ~ant~ ~econo~io posi~c~n of the 15,6 with

~,- ';~ ~ :' sur~tias irn~me is s~terse and the pt~lic v+r~.~th~ ~tpres~ic~n at d~btocs bung seriously

~:~,: ::: ,~"~~ . ~ :,

~

pr~ju~sd icy Yee policy r+sccmntea~t ess: That tray be ti~~ case, but ~n the abs~ce of data,

♦ •~~ A . ;ti^>: `' ,.~~,., t , one ,cartno#~isava'a ~t~iy. (nfonmed ~b~.pcat~. .. ' :. ..icy=:d~barte.

,{Yv'• •?.S Y't~~i:µ•{~ '.I< .,•~f'r. _ion` W •• ~.NECi Vea7..Bi~F~MY~ ~ ..

? ~ ; .. r-; . ~' -"'Tlie i~~~t~ed States , s mucft b~oa+~er nest p lolls and perceivr~ti canflsc#s of Interest

-'i. '''~~ - ~ :. er~aging insaivee~cy esslp~ts~s.'~ A- re~euv tiigFitlgfii#s the. tirffsr~at~s in. C~ac3san ~ .

:r. _ ~ . . _

~..i~~ _ : t~s e«~ err , ~ ~~. c ~ 3.~~ ~ti:~s«~m 3~ i :. .

. ~ - ~ - ~$f pC ~s ~ is his sec~on, au ice. w~h the cwm•$ avat,~• mad+ e~p1oY oaQe are ~m~ i~tn'yey~~ sttxo~it~ett: , aact~iv~eera, ~ ~ crm~r

- ~.'

pt~ofe~sioaal .per. t~tiat c~ t~ hold :tip repi+r~ent as ~~a~cst adver5c to the estate. artd

`

tai stie dim peta~oo~s. to-' tir assist the au~e in Ong out tae . ,~..• ... - - f1i1SLE°+@~g t~.1~C811~' t~ ice. ,' , .

. - . (b) If the ~ ~ttSttoiczu~ tb tea busiAcs~ of t2~ ~4vor eiseder ~cti~ 7~ . .I28'-. •cam' }IQ8• of t~s 'title. ear! ff tie der hay iegul~riY ~P Y~. .its. or r ~Zzcf~sss al pecsoas' ~a saw►. dte a xe~sy i~cta~n ~ regl~

. - ~ sue}► l~afessioaal i? if , in the o~sdait arf a~ctc bus~ess.

' _ ~ ~ tc) Icy a. case ;~ chaff 7.~ L; ar ~ I of ~ dde. a person is a~ot d~gaaa~if'~d €ar ~ .• - ' o '~I~r this ~ec:tioai y 6 of• p~.trori s eeng~~}+mcnt by ar~ off" s t x~ar. mess tIsse is motion by att~t~ ct~i~oc or ~e 33aitrd

" . ~ S~t~es at e. in h Asa ttx t;ouc't sbaU • stt~h ,employm~at ~ theme is an• ~ ~ aM~iat ct7ufllct of i~Dr.~t

• a~~t t.,#~~. ~t~tic~~ o~ ~, ` ~ U.~. , ~t~r ~ad;~ ~ f that €P'~~ ~te~~ c~s~ ~mpl~~r

.~ra~~~~iori~l~ 2~ ~~i~t l~ ci s gut ~ dvti i# fey ~a r~Qt hard ~ ~nt~ ac~v~cs~ tt~ t~~.;

~~tR#~ t~cf ate -c~~t~r.: d r~c~rss.i~ ~~~~titaa~s~F It i. ~ ,+c~#_ - pf+~ ~i~#

~r~~~~i~x~aaEs, int~ud g ~nr~r~s~rn~2 rtkerrr~ fir art~r + ~st~~~ s ~i~y,,.~t~~~ tsrt~+~ ~ ~~d

~ci~~€t~~, , ~r~~ that rho. € ~~,~ a~ ~fi~r~~ tha# is r~~~er a~~t- adv~~e ~to ire ~r~r # ~

fps e~2a~e ~' of r c~a~s of a ors egctfty set~i~tiy ~uitc rs ~sy tia~son +o# ~~r ~r~t,~r ir~ir -

t ~~I~El~t~i'LSh~] w~tE3, 6~~hF~~ rtt1, ~1" 9t'e~# ~.# ~38~~ra~~° ,U~'t~~" +C~t #~~`='P Qt' I'# ~~# tfZ~ U.~... „• . _ , .r~r~t~`}` ~~; ~ ~~€so~ ~~~ ~ ~i~q~+t ei ~~+~y ~us~ ,~h~y ~ ~~d ~cxr•a ~~~ r,~ :

. . c~~~ ors ~s ~ r r~ ~y e.~a r err r c~ ~i~ ~.5. #rc.~ f a.r~a,~''t fir .ifi~~re~ ~n

~~( ~~#iit~ t~~ #~~e t,x~' The qua e d i~ ' rapt ~ #he, ~^

. ~ . , - ~sia'I zt y~. tr a t~s .~ sa.*~t a~ ~1~ c~ oas~~uat fo~,t~~+ at~'~i~; .: ; a

a~~n is #~ the bass int~i~est s~f r~E~ _ _ . .

S32~kCf 1~t8Yt ~~ r~ ~1~ ~ xZUBflf~ IYk ~I~ ' ~ .Ct A3i ,~R~, , C ~ti~, .

tC~T '~kk~ t~` t t. ~ ~[t ~7C~i. IY ~: i~t8~; i2Ytfl ~ S~ ~ C'~/ ~OF'Yi 1R~S . ~ - .

n:~n r~3 ter ~a3xl ~~my inert ~ cc~ de~t~t ~i a~ ;" gar ~t -e~ ~tR~. , , .r cnx ~ sv~t;s~y i~ to 2 ., ' . •~ ~ , " .

'. _ ~f? ~ tr"us~ try ~t et lc~y a ~crso~ sit his ~ersracl as ffi ~cr ~ tbs c .~' -

~ve~ t ai I .S. ~ Wines pt~- 1g ~+cm:~. a ~ri~r to a~zy` ~:'t ~ ~i e~iic~ ,~'c.~'~ ~ u p~# ~cd. •. xi+a cu; t of ~. of _ 'IBS y s 3r,~ p~ fi~aa~. ~ i 't p~bt~ ~Zt,

ts~ ~d i~..t X3.5: ~r,~rr~ ~e ~~~,teat t t~` r 'aa~f1~ ~s ~ tt~f t trot oaf ~c d~b~n~°. cs ru~ats i ng tic ~.at .sue. '~3ists. i~ ~3:a n~i' far' v+"~ 1 t t tii a' ~~s~st~2e i7t apt

. . c~ ~~~ct~or► ~'7E' c fit, c. 3. r.~~er ~. ~ ~ ~ ~ ~ - ~ ~ ~ ,` . ~ ,

~~ I~ S~ctir~n f4~~,ex."~b~ t~d• " ~ ~a~ t , ~ ~ ~ ,

i ~ ~~ •. "~Z M.l~~ +M,?'f~~ ~. '.~ L.~~'liN.4 l/i bi4! ~M-k y •' ,. ... ' '' ..

~3 j IS iS€~~ ~d s ittJ~ ~.t1 ~tz~tt ~3.G~t ~i' itli~► itttta'~t4t3itiF;.ff!'~`gY~i~► ~" '?f~i':

tea ~ " ~ ~ Yin[ ~~ ~?~Y liar `emu" i7~ ~~ itg Of #~ 'dt?~,; . ~tnn ~.v~~ ~€~_f~r r~ a~~r ~f tl~~d~zt~ar~ e~ ~ ~o titty ~ctar ~h t~

. _ _ -.a~~ to -~am~ ~vitk ~Cc b .:. tu• ~ .of ~` - - ~tcur~ty +5f tie ~; - - ~- . ,

4}~} ~ ~.,. gat acid ~ss~. ~ t y 1~~re t~ of tI~ ~i~.ttt~ ~f tk~~'` a ,. c~c~, cat Iaty~c~+~#':t~c. ~ .cxi~~af i~ti~:

~c ~s~ t t~t~~ ~r t~~- Busy ~lus~s sf c ss ur a~quit~ uriry ~a~ by r~..~arr a8 tray d~ee€

3ia~€z~t ze trr. zyit3~. +ar .isst at ~ i~t, a~ ~ r rsti~u Sid %a z~by~ar }ah f~? c~ t~~ o~'tha~'~aragr~h. ~u` ' .

.,~ Win. . ,

In the United btates. fie hay been game singe ors that ids cf"rsirrfer~st~c~Re~ testis iov high a . . ..

t#~e~shotd ghat urmecessar~y pnavents se~sva~ ins frorei acting in resttuctueing matters and that tile. .

. - - mcr~e r~r ~ thre~ho}d should b~ that of acfv~ros irr~erest, t~flrted as ~ ~cn dal con€i'i~t ..ai

tri#~r~~i.s~ . C?ne of the con~tioris of o~rnent ~n the U.S. is ti~tt the ins~lv~ncy or ~ccoi~rtting

. .~ - ~ prc~~e must ~sctos~ elf ofi the per~or►'s cor~ectfor~ ~ the debtor.. e~ec~iiors..any other .

party with aei ic~te►~t, their respc~c~ve .Rttorrt~ys ~n~ ~+ccc►ur+tarrts, ##~e ~ United Stat~.s Trusi~. ~ ar - ~ ~ . .

. . . . ~ any person ernp~oyed ~ the. t of ate Unft~d S~~s Tr+ e'er ~ ~ ~ " ~ .' .: ; ~, ~ ~ . . ". . ~ _ ~

. ~ ~ . ~ ~n C~ada. tfie Senate Comat~e~ recamm~nt~ed iri~reased cad~#c~ivi~;~~which may ultimately ~. .

carrta3n same +~~menis of #hs U.S. _~pro~s~e. Thy 1l.S. b~#c~upt~y ru1~s ~ prov~c~e for: a fi~ic,~.1y ; .. _ • : - - .

~._ :.. -. - ~ '~ die Res~cn~rr t77tfrela of t~sr Isns► ~a~arr~~,~g Lusters ` rha~ "A c icc of ipc~zi is navofvcd~~t rho is

• ' ~ a rtsl: Etsat 3lar l~w~er s n crf ~ ct~t wnn~d t~ t~mat~ally $ad u~ve:s~v's~tte~ bvt~e - .. 1B~+y~ s oKm IIr ley du ~a~y~'~ dada to au~i ~13~t. a forrt~c clirsu. q~ ~ th~nd~san: ' -

. - . . R~S~'A7f T~'~'iHIRD) t~F "L~ IA1iV G{I'4~ER~N4 LAVi~YERS ~ 2~31(P~pcYsod~T-~nal•~raft ATE. t, •199b~. , . . discus~d.~a •A~tir 3. C~ca~xa~ex . ~Coi~cts of Est ~3 Ue~~r Ethac~l I~sucss ~ac:lug ~a tcv:t.,a~►~rs: ]s ~ . -,

Dlsi~tesaed~cess'ItiTtccss~y to Pr~l~erve th~~I~$rit3t a~tZxe Bgt~t~ig~y System'' ;'~.~.~39138 Ha~fstra L Rc~~. G7._ ... r.

A . ~°'Fc~. R 8sii~. P: 201~k ~ap~yme~•Issdes. Scctioa 3.6.1:L Rule ~Id. elided: '~fag]oXmms off =

_ • ' ~ (~1 • ~1'P CA'tTON'Ft?R. A1~I.QRI~}~A C7~F,~Pi.0YA~3+I't AA grdgS~pproviag rite ..• ~ ' ~ . ~. ~m~OYt~t t~ 'attwafeys. ~cco ~;~ • ~t#.anerc~.' . ~ ar aiher , -

•. . ois~s F ~a ~ ;3~-''7:.~• i IQ3:. ~r $tt 1 ~ of,~tec ~e s~aT3 be ma~d~ meaty as ~ ~ ~ - .. - • ag~t~tl~ ref, ~,or auk or comar e. fie. apg~ac~~tians ahh1l be Sled unless the

• ~ ~ ~ ~ c~ Is s 9 r~as~xitci~lity sas$. s tc~y ~f tine"app~tio~t-s3~alt !se t~sris~ued by ~ • . ' .~. - ' ~ " . -~ s~pp3ic~f ~o tht T3u~cocl- 5~atrs- trit~ee. 'Igte a~p~icauc~a s~ali stye tine .~pec~ ~t~crts ~ ~ ~ " ~ ~ .

. • siaowi~gg t!~ n tSr ffa t~ ennplayat~tt. the ~tiaene of the •pers~t zo b~ ~lavid. •thee~+cas~ts for the 'setecti~, tb~e ~t s~rFc~s to be~ t~ac~es~i. aav p3+a~osedsrrnag ;~' ~com~easso'~. an~i. to t~ Ix~ of tt~e s~lie~t"s ~i8wied~, aI~ of ire' -~ .

•. getso~t`s coa~ectic~aa whh 1t3~ d~hor. croditors. mtX-other patay'iu:-iu~et~s~. tt~ic• ' ~ eve Sys aad~co~ats. the iTa~ed Staus Estee. ~►r may► ~xson•~isgloyai. .

. a~ t~ officx of tie U~aited States w ee. 'ice ~n sfLali ~ a~vxapagt#~et1 bya. :.• ~ . ~ ver~fltd sta~maut ~' tax par~vn to ~ e 2oYcd g fardi tt~. person`s zannaccians _

.'..' . .. ~vr~k tic. tl~ix~. crexlitcrs. ~ay'~tfi~sx pa~r~y f:t , ~~hctr te~ecdve keys atad" . .. tht ~iGed Stets .tr~toe: or aaq pCrsan ~~nPl'~Ct u! t~.e. offica of the. .

~... . .t~1 ~ 5BR'VTC:E.S A 8Y MF1~ER OR AS~EaCIA'IE ' QF FIRM QF

' A3"I~i~3~i~'~CS OR AOCOUPTI'AAITS. I~ grader the Cade anl~ this rule. nIan - .or' ~n is e~p3cy~tt as an umarirey, ~r an aaowt~c8 ~P ~ •~ .

cvrpoa~~n is ~ as an s~imran4 ~ ~f a named any ~ accanatuat is -~Y Pia- • ~ ~SuYar as~saase of the para~sb}p. coxporatioit or

• ~uliv~du~l may sect ~s ~tto~tw oc ao~t~at ao crngley~ect.'witbout;further order of tie. ' ~ ~.. court. ~ .

.;_.Rule ?.4~4ta) t~ves not exp~sslY supPleu~ta1 ar cc~m~s~uing ~disc3o~uie. ~ _ ~ ~ -• Y3ea+ 32?t~f impiiea a duty of caniinuiug disclos+a~. and eegtures

. . - g~+ onais tcs revra~ oo anise afeer shei'r i~cieatio~...~Th~sT ~cj~inu~ug ~,~. - discck~sta~ [nc} tj 3s any to pm~ve the i~t~r~ry of tt~~ b tcy system .

by e.'ttsrsra~g that t3~e t~ustce's p~vf~iaa~s ~nfIict free,

a a

< _ =• ~,.epd~d i~g~a. a~ ~hgt +~filt~ie~ a cv~?' t ~r p~r ~r~d ~rfii ~f ~nt s~. J' f ~ ~no~r~r~.

' ~ - ~ : t~ it e rules # w st.~:tc~c~ ~r~r~s regsrdt~n~ ~ at~d~t e ung.. ~-1 ~.

J ti ~-~s'4 ~ .':~ ~ ~t 't ~~~#t+~r art the ff~m'~ r ~I i t l~~ az~ ~~ted. d€~r.~ rl~r~a~rs~?xtee~rAct_ St ♦h k ~

~ _

A~~ ,;~ , ~ ~ ,A~'~ ' "~ mgr' ~t ~t9~ t~~~u ~ t , r "'4 ~ ,. i

>c

. ~y ~ ~ '[ ..~. « !`$~" 1"E~$ '~f7 C' 2 E~ t~~Q ~t t~S $1 eta s[ ~'~€3R~T$ ,! # it ~''~1 p~r3~ ~tY e•'Ei ~Y~~

- F Y=;~ ~ a= -. ` .amt ~ d - r~~~cda~ sear s, ~h ~ m ~~v€~ € urr~ic# ft~ ~ rEv~ ~r~f~ss or~a:Is

~~In m, ~i ~ ~~ ~:~'~" '~ d ~ ~~.- ~ : ~a i~~t~r ~~ ~g. 'ohs ~~ ~~p~ ~r ~ana~3,a~ cc~~n t ens E€stsr~_ , ~ ..~ ~,~: ~.

TMt'~ t`~ lt.- '~` s ~Y'~ *;~,~~'1~?~' f~ tYi~.1.T~i7~1;(c~ ~~~ ~~~~ iLEie~e '~#E Giila7~~~ ~ [,ASGiF~,T i ~ * ~ ~' ~3i~~1ii ~FA~MV~ x+~

; Y~ , ', ~* ~ - -t'`.~,~i'1~ fOi't~ get Sits ~ C #~~Gt~t ~a~n ` , ~ .'

"~'~` ~ '~ '~ ~' 8f ~7~'~~X' }~~G`~ ~C#Cfi~E1E~~t~~1f"1~d~1'~ ~.~±•~iB~~ tl ~~ #'1~?*~L[t C'~5' '~'~'t~

:~~~ ~ ,:~r °t ~~i 1 ~hav~t~$ ~s ~au F t~i~r~s~~~°' fit' ~#~" vat tks~ e •~ ~t ram y ~f .~19 s~~r~ ~

~ ' -'~° r • s ~..prav~d l °~i ~ i~r~►~f f ~~.~- it. ~r a .sir ~~ir~t~ arn'~m~fi ra ~a~y" ~sf:t~,~ n,~r d~eto ~~ a„ t~ ~ i ... ;. ~' : ..: .. ~ . . ~ - ; ~ i ,. .. ' -... > ,

' _

:vt~J ~l~ .i i1 ~.t . ''F {ill ~~±R~~ ~'47L~~ ~rl~ ~, R~~»Ff~~ ~~ V`~E `~`3 ~7{~~~• ~ i it #Ei[Vi RaK~a '~~ ~'

..

~ '~ ~,..° ~ f~~° t'~~ E~t~i'~~ ~~ 11~i $ '~'1~3~ "8 ~' ~'t# o''~~ ~~'t@ ~ttt'~~l~ ~# ~ ~ ~r-~1. i ~ ~i+f '['1'3

~;~:.~"r'" ~y~ % Y ~~8~ '~t'i ~~~L~kYB~ d~ ~'tt3 ~~~$ CBP~{}~$'~Clti'~ ~~3~#.{~tt 'd~@.~~ ~~'~"t~ ~,€#1~11~~~,ik'~$,}{ ►~G~'

~- ih~~:`~ j ' :r~' ;~~~ ,~~ ~~'x~'t'1F3" C#~ ~~'~~, ~ 8 t,.~~~ ~'C'F ~t'i~i~ l ~~'Il~~ ~'t~<

'tom ~,:~ ~ i e~Y~"a ~i #'v i t'~~~ ~:~~r t~ t~~re'~ ::~ a ra~v. ~rn~ t~~• , .•~ `~ ` '; t' =r~°~t~r~~r:. ~ € m ~~ may., ~#l~ .Ark` e~~qi~ t e ~~~l t~''2 c~crr d~~s orb ~_ ~ ~ - .

~, , ; ' - -. ~gs~g~~m~# - ~#'i fit& ~i~#tc a~it t.~ a' iG s, ~~ fog. tt~~ p~~S d #~+e .< • .~h j ~ ^~ wi t i „~~t wing 1tr~ei~ri~,'a~tt~~+ ~: ~ ~a~ s~~ ir~#orrrr n 3~► 'P~~ .

,~ .°mss. ~ . ~ .~S ~~~t~d+ ~"'~ fL1r~`~~r'tf~~ s~'1~. ` . + ~ ~~ t ~~• :# . ~~` r~ ~~ac „y ~~ ctr ~t , r . t a~ ~g _~~ ~+~c :r~i ur ~t~ one ~ r #~s ~b~~ ~f . .

' 4 ~7 ~'~~~!$ , V~ e~ ~F4f ( V •~ ~iii~Jf ~if'L'~ f i~~~•

,* i

[ 13~; .~w7'~ ~ D~M3 Y iii4 ~II

. .. ~ ,~ii~lt7~f~ ~~. ~i6'J~t%7'~r~• ~~Vfi RdTi.,~~~ ~~~~ ~{~ ~ ~~~ g=~4ii ~~

~:~'~, ► t~' E~ t~? t'~> ' a~6' : I~ ~r~~$ ~S tii~'H~ C1 !'~t K..~aEtb~~,. ~d t~$r~

• ,~~u Ts~x` s -fie ~a~t .: ~~r~e a~ ~ ~~~v l ~~ k~:~s fc~~~ fed.

~~` S.~r rr~ Qxl~vj~~#. I~1~ Stat. ~. ~3~.

~~ - .

. ~ r~~ r~qu~i~n~rrts ~o~ ~nh~tir~ed di~dt~state afi fees paid to ~c~or~ far boti~ audit anti .roan- - . ~ ~;.

• ~. ..fin t~ink~n~ atsout the hnptir~o~ts of tha Sarbanas-Oxley ~t #vr Can~dia~n pto#~s~i~nats; it' is ' .. . ~.

. ii~g~o~ant to ri that the captt~t tt~ure aof an toarpac~iions defers sUbstant~s~ly #nim~ that

i~t the l~~ted ,'end hence the gave c4~ offer. ~ ti~ose ~comp~€es iis~ed on .

the TAX index. a majorl~y a eir~l~ ~arehotd~r wi#h iegaE control ~artd r'r~re Sian thr~~-

:. ~ c}u~rtsrs c~ ~e cam s hate a ein~e sh~~holcfet ~r a gaup o~ ~hres or-toss s~iaretiotders with _

ear f~ga1 I~or effect~v$ cr~»tra[ of the corpora~ara.~ss Onty '~49b a# #!i~ iximpant~s ~~n the . . .. ~ _ - t

` ~ ~ - . TSX ~0 y held, ~t~f ~#~ ~[ put~3'tr~y traded companies : on~ Cari~t3a's 'exc~ia~ges ar~ly

..: - , : ' . ~ 5 4~'a are wid~ty trat~ct ~~c~d stave _~igr~i'ca~t : i~~utional shecetia3der~ hoi~rig~ ~ Directorships - .: ~ .

- - ~ are ~Iso + r~inec~d, "a~ftt a t~h ~oport#vn of t~rector~ .having mt~iP~e d~recto~stiips.s~'~~ . .

' - ~toiwl~iisiairtt~ing ~ di~Eer+ertt~s . tn~~ itat ~ stn~scstcs~es. es-Qx ~~ writ ~PP~Y ~Eo .Cagan . ~ .. _T--,~.—.....-T., ._...-~.-------__. ~ _ .

a . ' . - t:08'RQi'~Of98 ~lSt ~~ ~ ~@~' $@L~JI°~98. fit.' ~~. !''~~ ZS ~~ SI"8 { dCl ' W S , 8'~OG~C ~g~C@S. ~,

• R@~V~l~/ 1N -~8r1A~~f1 CQ#Ct~f~B• ~!' ~i'1 "V.$..~bC~C ,@XC.~t81t~@S; ,(~t9i~ •t'F'18L+~d• 177

ccaap~ri~~) ~d ors ~sub}t~t to tie S~b~xt~s-Oxley Acf s •regta~remen#~, ~tti~ugFi ftiase~fi~iact.are ~ .

• " ~ ~ - ~inong th~'lar+ge~t of Canada's tx~sp►orati~s.'~ . ~ . .. , • ~ :. '~- .• . : • ~ . . . ~ `'

~ .~ ~ .~Po~t ~nror~;_#he Tararrto~Stock ~x hay trued ~ t~=` ' ~ ~. . . ~ ... ..~ ~` .ctt~r~e i~SX~ . Ai~O~e osiz~e -requirements .• ~ - " - - ~ci- rrded va3tmtaty guict~~ri~s _racornmeraiing that eut~t ra~nrnitteesashoii~i ~~tie.c~m~s~d ~ .- .._ . ~ . •. ~ - "_ - .only' of - ~~etated ~ c~ac;~ors end.. ~~at catporattvns ac~ap4 ~: ~` -'ttiat , sets : out'~.ttie- auct~t

•,s

' camFnitt~'8 #'.o1e~.8r~¢ ~s~Orts~i~es,tsg Th@ guldela'1~,$t~ggeSt tt~at,ail,rit&ritbBis On~ die aUdtt .;.:. .. .' :_ : ~ t~rnitt~a ~shoeul~ i~:f~n ally lit~t~te .v~r33h st: test at~g .ti~tnber :hmvir~g~ iura~#reg. ,o~ _read ~ : : ~ ~ :.

. . _ . ' - • . '~ Rid D~i~s & ~~flfrey M~cI .'"I'cra s a Y3istiszc~iva C:~pd~Yc Law Itegi~ne.: ~ 1991 ~ 49.Usgoods• • . . . ` H~t2 ~v 3ourn~22 893 ~ 884. - ' .' ,• . • : ~ ~ • . ~ .

'~ Of ihh~ ~~ad~r. 59.~~b ~vvcnne ~c+egeie~acly armdrd aad 353~'o ar~d~ad 'at a ~~dcrat~ fregt~er}~cy. rbud., at 877. - ~ .

• ~'~' Runa2d B. Davis; "mac iu ~S-f3X Aio~tk. A tiara of fit: 'Ibt Adcr~t~~ ~ tJ.S:'IV, et Kati in C~clat"gaithc~amng. Stetson tawRev~esv. ~Ot34. d J. D els-~ti Path H~tgeiu.'Tod C~ f~~mfar~.'7ho Rvkof dh~ Closely Hid P~bl~ CoYpor~oa 3a the C.~as~a Amy ~d tine L~li~tic~s for Pgbtic Polic}~'. t 1945- . .~? 26 C~iadta~rt I~rw loycr~tal 1 t. 1i~te ~tpp~atb~e figa~es w~+e ?~8.9~'0 of dir~ctois is Cu~utda hid two ar

.. .fie maw ~s ,wee the Io im tie US: was 18«~.~b: ~ . .

- ~ I~ ~ C aIIs. C~aa~ri.l4esponse ~o Sttr xlev eUttiversity ~f ToYaato Ca~p~tal Ms~rk~. itu~i tI$r~'up it~3. 3~stusry~. at 9~~#es tt~i~c~mly X77 of Cm's 4, 00 publicly traded compattics arc

#S~ apt V.S. stoc3rex~. .. ~ '. - ' . .

'~' "LTnre d c~cctx" is d~'uted as at sii r ~s it~epead~t o~ ~maagcmenG end is free from a~►y irieerest" . and s~rty ~usinass cbr r~clat€ wlt~c~t cv~d, or ' . 1y ~e ge~vc~ ~tv,~m~tezialfy aiterfeY+a v,+}~ tbs

' s ability D~ act a►~b a v~xv tiri the best fists of t~ cor~tip, oti~t~r t ~te~sis. send ra~ans~ips .m ug fi+oss~, c~Id~g. TAX ~CYmtp~rrry Mcm~, ~. 472. Carp~raYe Gove~na~Cinidc.~es:http:l~TSS~.rAm.

'!i :i '

.. .. ~

:;:tit: ~,ri ~ , ~ ~ .,din ctal ~ Baer .i4° `The ~'SX =maid - ~ar~e .v tary~ ~ r~vt ~ ~m tart' and ~~n~e t~o date,.., Y,- . -

.;; ;~ ~ :'- .- . ~ - ,Coda his nt~t fognwred tfie United Sates in codfif~~ these s~et~~rerra+~nt~.

r - ~' ~~ ~ in. ~ntrast to ~e ap~ca~ch of ~ana~ian ~regula~ars ~o goner e, tha ~3.S. Saran xiey Act

~ ii.o.;~ -;,~, .. ~., s, : ,~ i. r~a~ro:gu tines by #~ NYSE rtsan~atory.' Z'tte Saib~n~s-~3xtey Act utlltzes the: power to~f~{rte ~i~'~ :10- .. •`'~ i ~ ., _. -

_. "x~:. ~:.;~:=::~ ~~cchanc~s trcm fl~ng~ tf~~ sto~tc vi a no~omp#ia~t. c~or~panY a~ tFs~ me8ns to^ t i •- .

'~`~~'~~ `~ '~ '! \z-~LL3~i~!,~n.ai~nrsp~ance ira~th ~fis~ ~gov€~°tt~rtce r~taquiremen~s.•In ~rd~r4o rvmpty, a ooI~rpara~on'~

v~':~'3j.y,- ~.rv;?r~'~'Of ~t I$°- ~L L"Q3~i1R3i~~ ~1~i t'!S~?.i~f $OT ~'18 ~7~10~1~'PJIBn1 Qt ~'1@

~~ ~~f~a4:' ~. -;r~ ~ W .P$~; X39 ~i1~f8 Ot3 A~ ~$ Bid# r S,S ~16f"'t~18• t9T,1'i'!L[St . jf -.40 ti1@' BUCK

w~. ::: ~y,3;:::: ~-+~~m~ittee:.lr~ , 'S,~r xl~y ifc~s• that the cammi~e .must• ~ ~ _sad ~f

~;. "~`'`~'' =~~nd nrlent .dt~ectore and pr~v~des~.a~ defu~~ ~ of dance ~fi~t ptQh s ~y fmancia~ ~ .

~~~~~ : ~ _,_cq~ri~e~ation ~ ft~'dir~ar-from the corpoi~tion offer1f~an the normz~l~~t+~ct~r~' fees. ,Thy ~tsdst

=r~~ ~!';- ~_'.~~~itrirc~tttee melt be ~sr+avided w#th the ~ower.to~ engage lndepet~dent ~adviso5rs, an~,t#ee oarpora~ion

.•.~~~~ . ~~ ;.•;". ' 'st'nE . ~Et'D~d~dB ~ tMi~'1. Std~C~@11t ~Li{~$;~ }~~/ ~ Std• ~(tI1-~1f~ aY1~f .~~$$C3,Btt~~~tf. ~iClf#1IS( f~@

~-4 ~ ",='='~ ~ ~:f.. ~ _ , niusc e~tie ti ~t~edu for ~I~at~~wi~: co ~~boui r #fig oT audit-

;' ~.F~:;~' ~ .. :emi rs ~:~ttd . r~'ier~ris ~#y•~~ti~ ~rpor~t~~ ~~tptoyees :coin , contact. It ~.~iaonymously and = in_

_-r::~~ - ..•~ . - cohfd~ei~ce tai oott~afn abortdc~lous rig' ~'41 G~orpor .affic~r~ respons~bte

l~~:~ • ~~~ `=3~-`~ ~~#+a~'.~es~sc~rh~g~ th€~ f ~carp~ra~on his +a sit of tc~#emal c.~ro#s'#hat w~l provEde`them vi~th material

•`~+;;~'~'~,: '~?-.5~,'~":~;~1'~~OTtC18~{~!1'•$b0ltt ~~}'i@, COi~Ot1.~A~1t~~ ~8 BU S' ~iitt~ ~ V~T~]%u'=9 -~'1~#':~'1B. COI'~#P10~ .

~~` = ~ ;' ~ ;~ ~~~, ~~ $f ~ , ~r[tg. ~@t1Ct~ ~0"epOff I+~ s~c~aiiti g~8i8 The}/l.~°.,;. - .e~+te ~'n+~in,~0;d~ys. .szibm a u~r~d c~tde~ es: to tin. .

?."~ L ~ ~ ~~~ ~~'~~. -y~ ~~ttso _ ~ Sri the Irrt~ri~il controt~' ~r~v~~led~~4y~~the~r vecifl~ition tes~nt~t':o bs~s may, ri g;

:'` '`.~' .~' ~~'>ht'~~". d~ariy.fr~t~d.ihey~may have c~scovsred t~ #~ ~xarporatic~rl's ~~~d Use atcd~t;camm'sttee. ~~

- ~ ~ ~: ~ g dg~d c~~di an of fhe~ standards suggests t t~acc~unt~g fu~ms t b~~~ r~t~s~r ~m~ed }r~

,~,~,. ~ .. ., ~ ~ perfan~ Ong msa#irency s+erv~t~s for the d~b~or, where ti~~ ,prior ~~tt Eves.~vhere~there.N. .. ~

~~ " ~S: ttA t i_ 1~11f~tCt, Clt@t'itS M€,~/ ChOCB~ $O ~VvtL~ A~1y p~OTt, Of C Gt: .. .

f ~' , ~~ .. ~. .. • ~ A key lssiie~~s snfieth~r• or riot t~ su6~stanti~l costs of compi~an~ea,w~i~ Sarf~sra~s-~Oxl~ytype rules .

:, ~ : .. ~ . ~: cane be ~ jt~s#ified .fin Cariad~"s. ~ap~! ~ ma~ic~ts. Those' who favo~sr haimanix~t'ro~ o~ Canada`s

w; : r~~u~ib~'is,,with thole v~ #se' 11.S. suggest that ~t w~~ Fmeet lrnrestors' {~ra~Iudtr~g c~+ed~ors')

_, ~ ~ ;~ >~ • .cot~stris e#~ut r+eg~e~ory ~tveaknesses.~nd,~vmbat inappinpri~te~~nce~titr~s that~i~ left•unchecked

. .: .. . i.u►'I7~ ~ai~ I~Toi~ StsDes d~t~aa acc~tabk d~it~ of fi~Cial I~aeracy as ttte "$~il{~y ~ ~d end t~ttcterstsnd. - - - . ' s . s1u~. tm i~[c~s d sffid a. cwt Soya► sit". Att ale de£~itian, cif ac~auntin~ or

. IY~3I~ { GC~lCib~P.~ iS ~C ~~► t0 8i~~ ffit~ tt~it ~5~2.~ ~ 3I tS. ~1~ ,7g tit$ ~7AJ~lp. ~d ffi A $~~~~~. C8. _ -

_ '' ~ --µi Sar~n~s-t?aatcwArt.'i 16 Scat. s. 30l; t~.e ~~arbsnes-OxlevA~cz also est~b es civ~ ~ "ofd ftu~ ~c~ . -. ~ "' blo~rs wbo ~krse t~ir~ub~ ~ ~e-paaaii2eti fair ~hiwi~eg the w~st~e v~ith ~p~Z t~ fa~er~! ss~ita~s le a

• ~ violat~a~s Sarhar:es-0xlrti►. i 16 3taE. s. 806. ~s we12 ~s ua~re~s~ng tie ca~ininal ~nulcies far retaiis~tic~tt Est.. . ,n►~hisil~e.b~aere~,~Sar~re ev.1 I~6 Siat, s.-107.

~~

~1'Y~17~ ~ C{ ~ '~tlttJt'+B ~~'lt~6t1 ~CBttt~B~S ~I ~~ ~t# ~li ~'i t:4~ " 058 1N~'t0 ~~CS@ W~70~8Set~B • ~ .•-

. ~ ~ ~arr~ars~za~on ~ suggest that piny ~ana~~n r+eguEatary ini~i~€u~ . ts. pr~mafur~e bacai~s~ U.S. ~ ' ..

• iri~Iemertt,~tion ut~ttons mus# siiiil ~a prcamtdg~t~d; tfiese are problsttts of fit ~w€th _ ~ariada's . .

d~fere~t s lcortittot structc~re~; that s ~rut~ based epproactt right sand it~te 1~e effarts ~f',

Cannac~isn re to craat~ a'~ca~re'~# ccr~l~ance" in Catnnada's co~praie govei~~ncti end . ~ ~ . .

.secta~ties rta~rf~a~s.'~'' #haw 'this ". debate . i~ t~tim~tety ~ r~isolt~ed. with , itgfit~ertce' ~~w debts~r

~ ~ ~ ~ carporatEons pe ive canftict~ art~d ~e ~ ant ~~iga~em~t of-fnsotv~RcY P~ofessiona~: ~"

{n bit Cansd~ ~tnd the Urtt~d ~ : ~trb~c comma.. _ rtg o~r8esi~ht ~bo~t~ls eve t~eti

crud to ~Pot~ interests of the ~nve~ting p aruf r~#ore m~lcet cott~id~i~ce. ,+Iti 4he United ..

Mates, the Sarl~ , zf~y Act , ttee aecau~#fig profe~sacn's.• self-reguia#ion over• .

. ~ a un~ng tndt~t~r ~r~' arec! ~iv~ ~t -ta the Pubii~ boo any-'A~ur~ing dvecsi~ht •Board

• - .(thy "PCAOB~ ~a. ma#cxftY of i se rneir =will not be sa~ynt~nt~..'4t Audit firms ohs# wish to, .. ~ • ~ .

. • ~ - ~ cxi~ttnue #~a ~eudittp~bticly~tra,~~d carip~ntes riii~t r+e~is~er:v~th. the.P~at)B,~.w~~ch, has the ~so~ar' ~ .

to r~ulate ac~oaxit3rig in~ ~ ~ari~ard~ - r~~Ing to ~diti~tg ' .. , . Re~a~ft~ canEroj, ~~a~d

. • ~ . ~ eth#c,~. $or ftto ~ fcr~ts regisi~r+~d- if.'~ ~ fn adr~ttan, i~ tOB, wlt~ ~utru~a#iY.icispe~ct ~the d~rg~st .~,: ,<:.~ecouri~r~f f~ms'~.~aia~Y •c~ontr~, tntein~l +car~ro~ snd i#~ the ~ ~ ta'lm ose~ . ,

} ~ . ,~p~ttalti~ ~ for d ieridgs; inciu'ifl~g~ the •~su~snsia~ acrd~bat~iRg .of• s~ arid, Ec~#iiii~luals'from. ~ .

~. , : pu~i~r f~nm~~ ting.''~ e prov~ic~ns~ errt e ~epudt~on of; tk~e dass~c :understa~xc~ctig of

• - ' ~ ~,~nd nd~riY" ni t ~~a~€tor ~~s~a fimt ~wtu~se reputat~on,.for qulalfgi~~au •~was _btie.•iseniice

. ~~t' ~vvas ~be~ng .so{d'~ tMe ~ma ."a' ~T~a PCAC38 w~ set ti~•prp~d~arai ~ent~ su~stan.~ivel

accO~t'i#ire~ ~i rtes, St11t~ V+~rKy ' tBC+et't~8 b0 'tt~Se ' td~rc~s'#hr~,r~.~itS _~SO!wFes EO' irispeCt #ire '.

• - ,~ - ~~ , . aue#~t fi~tns- The aiid~t aorririnf4t~e, iivt-irianagem~nt, r s:~rtd~.~i~e'!r~~rs.t~es at~dit f~,'and the.

.' ~ '. . • .Qudk firm mgt r~i~rt~ to audit ~rt~tiea; ~uQplarrt~ng. rxi ~. ~o~cces-with s~ict r~~ulatory

• cor►tr~ to adcir~ss the prob~ecYis ~# tfie ac~ou~ir}g ~~t~dustry.'s:.c~fl4ct ,of•lnterest. Sarb~.nes-axley. . . it~ct~as~s. the pat~+itial ~~r~aS~ ~`~ tn~leac~ng staternerr~s~ ~o~c dte ~nat~ial; ccmc~tion of the ~ .

. ~ _ . ~ torpor an ~~ b}r . irtcrsasiri9 the chril . and ern pena~ies aid by , vequiris~g ~, th~ss offers to -

. .ice I vIls. Car~ad~oa Reslwnse-supra, aote I3S a~ 11. ~ - ~ .. .

• - .• '~ ~fi~d gat I2, - .

• . ~~a Sar~boti ey Acct; Z 26 3tat, s. I01. - . , • ~ ~ . ' .

. • ~ j4s taeas~-CCJx1eyAct, I ib Stmt. ss.1~'~.1Q3. ' .

• ~ .s"arb -fey Acr, i 2$ S~ai, s: I(D4 —1~5: ~ma~g that gY+otuids for suspe~3ing ir~d~~ittu~ls and firing ~s fair ttfaiku~ eo t p~nr~g audits of publl~c 1bFd s. 1Q5t6). ~ ~ ~ .. .-• ,~'`~ Ids, sag~ra. t I37. ' . ' ~ . . ' i

~ - . - ~- .

}..j~ ~

.• ... f

' ~~ ~f _hr ~ ~ : ~ot~sgorge. ~~y Prot'rts from stack Ong ar bor~~ses ~~. mis~oi~~[ was -~t ti~~. root . ~f ~y

., ti, ~~` '• ..-t'~St8t8(T1~~'~f ~i't$~i~~ ~1CifDiTt'~S[~OR. ~ - .

;~~=r:~ t • .. In '~ari~da,. ~i ~ new Can~t~i~n f'ub~ic ~ountab~'oty Surd. (~PAB} has taeen set up, ~ also'•:- ~, ~`: ~is;~~ ~~;

;~`:1'' ~ ~ ' ~ ~i~t~dent, #h r.~~~~tttat irc~nn the .~~r-secu~re's stalce~iaEders. Uniike the l?.5., tt~e

t:, ,~~~K`;'__ . ~ pcof~ worked wI~ refit ors to sit the~~PAB up ss ~ tans to enhance sei~t+~gc~~at~on~ end.

f~'~,t:x;~: tr 1t4. . _ '~~id3~ ~'~$V fU~C• t~~011 °" t'6 ~.B~B ~ttii'W~'1~~8 ~.~~3~$C$~VaE38 Of ~'0@ ~BR 51r~ :~ :fin• .• .. .'• .•

''!.~,~~~.~: ~,:z ~ r ~ ~.5. R'#OY~S'~U. pl~i~C BGCQt1~t ~}/ ~ ~ 'Tt~, YO ~~lTL'~ t~ll~~ f0~@ Of B,CCO~ttt'iT'E#S ~

~ ~ ;~~ ~: .~f ~~ -.ga#sk~ep~rs ~in ~ceor~oration ~over~i~c~; she's ~ d~lo :ark. cjuit~ biffer~en#.

w,~~,,~-~-~ ';:" . "`~=: _`'fTte 1~tely ir~p~ct~ of :th~a:. ~,►efoptrt8~~is ~. in_ the .tln~ted S~i~s for Canacfiaii 'utscilv~cya'~ ~~`•"`_ •:~. . •~,re~f'~Qti~!'~ 1S itc~t yet cleat'. . Witt iS C~e~lr•i8 tt~t.~f'~..S 9 CC)fttIT~itee pQf~3VBd tha~~ there af'~e;~ ~ ~ :~.~ ~: ~.: ` ~ -an~l~~~t+~ isse in Canes•that~requir+e.tuct#~~cca~€'ic~c~n end futons pub~c'+de~ate vv€N

H~~~'~~i L.

• •.

~'~ ;a~ '~`. ' "~' • - u`ridonb fy ~ke~ puce ~~n 'tha _sfi~io~w:.of..LJ,S..re at~ry:'d~ct~es. ~- The #nsotirenajr Institute ~ ~f-~~~Y~~i;jJ ~•yd~1~. ~S~i:fGt. 1i .'~

p . ~ . '.-. r ~.•~~:.. ~ .~ ^t ~ ~~ f ~.~

'l ~ ~ '~ ~~. .r Q, .,~11s~ '~~ •V~a~I~~ Iate risv~r~hcy_. €~tid .R~ttucturing ~Prof~s#bn'ats ~e

~~~f;~;;~ ~~r _ ~cot~t'd~"iing:thl~~:gi~stion- in.#h~ co~oct.Qf~. ndira9.to:, S Gomr~~e R~port.~ On~~o#. • ' :;-• "~ • .: •itS ,~Ofk~ti~ ~P~OU~S' ~8-7@t~17C~Rd@.d• ~H# •~!'t~/ t.. ti8~ •#O ~?P S~BCi811Z6lf SQNtC~3$

F;%'t{t•~;.~~ .'• t~~ .-t0' 8~ C!~t'/~74r~'~TOC$@!~tl1~, • t~tt~~~:~aU~i~JC$,:;Yi1Q~C~Ss• BCC~.lfl~!'itS,'CRd9~,' ~C 18S. _it ~..'~~:~,~~• •<r''.-. ' •;~ ~;• H` _ .. ,~ . . - . . , . -.. ~ :.-,.-` .'' y+. ,.-~ .~. ~~' "f~~~d .,.e+i~rd~ =~tpp~s$rs' sh~td: ~ ~a~rc~i►ed hy..th~..c~t~i~, on- t~ati~e; no ~ c' than ~ four- .

~~ . . ~ '-~ . . #~i &te~s~ mays ~~f~r~ttie~~r~cgagentent:'~sa :,fit t ~nendad t#~t rrion~cars -minted on e $X part+e -~'~:. ~'b g •.~aioui~l ~ ~~' ~~ etri~~.iv a ~ts~titot~ =cold • :~,t~k:. t~e~lring 4 to y. ~d~iys•~ the .

"~ ' ~B~iQ~t't~~ 19th ~~30~ #f7$t•` 8i'i~' @S ~ ~~4'~?$ 8~~10~31~'19t1~: C$~1,~?U~~ ~teU' ~?OSt~fOtlf 'bO~Qt@ ~i~

_ ',:~J'° ~ : ~-. ~' quit' ~ ~~'he" i~lto~fd~ig ~t+c~p~ ~e~mnrtertd~d. :Irt..cons~fer~tg~. whe2~r or .~o't• ~ ica~ ther: -;' ::.... •. ' ~,- ~ _app?° . , R tor~1, ~#~: ~ourt.~ shoes. cons r a~ ~eutr~er. of ~ped~c ~`Fa~i~ #o .~ .

• : .: .~- cxetermine w# ether ttt~prof o~tl fah Fravtde.~ lrid nd~tt ~dvic~, ~ Iczdud`ing f~ec~om ~ from. - ' .. aonflEct~ of ~rits~res# i~rnd the abi~iy:to des! w~#t ttie, r't~ts of. aE~.h~teresf~rd parties.in ~a fair end sv~r .

. .. =:;. - ~ _haridet~~ inani~st. ~ -1t recd»ended tit ~per~eived -:conff~s of ~rtterest should ~i~e ~cott~~ereri a^= ~~~ ~ -.: •~ . ~d~qualify~ng fact only 'if tray ire sieveTe eno~h to }eopardize~ the ablilty of the pro~ei~di~gs to

.:': -vame to 'a mason e and efficient c~nctusion or i# the perc~tved. cor~ct is savers ~noug#~ to. .place the pra~essionaf ~n a - potion • whets ~ it cannot work to harmony ~ with those - it • is to

represant'~ ~ ~t further ~:ommendad express ~r~ ~ir~nients. and f+ac~s that 4tre court~utd ccc~ss'~er ~ c~squa~fiyi~t9 a p essiona! fr~n acting ~ a partEcular fps. 't hh~s end ei host e~f .attier recorr~°n~datlons ~e aimed a# coc~#yl~g the rota of bnso}v~nr,°j,+ pr~as~#onals In both

~'~ ~ n8 C~e'auP ~ c cry ~ndt~nc~a~ Issu~slRol~ of the ~+ria~imr, t13~Apr~ }..on file vvitb'i°~ .. Ta~oiveacy dture t~f C a.

.. . ,s~ Ihid.

~;~ ir~lv8i~t snd b,~rtkri~P~Y P~~~~. A ~9 rrecsre t~f, a p~ir~ip~es-based rather ~'t~n the

.. ~ 11.a ndes~b $ppr+~a~h. Thy r~comm~ds~Qns vv~il be cAns#ci~red by the I#C and CaERP in ~ .._ . _ _ ~y ,

~F •-~

t ~

- 7' . - ~ AS 4M@ 8~8#~ COY~BW ~71'OC~SS GQ ..~1~'1@ .~ [t C Q'~ C{U9g~fOitS 2~18t nB9d t0 b~ _

R: -~ - -. . • ' ' resohred in r at of car~E~~ and ~t~ve~ cam. ~a fiat is tie auditor/man~tor issue and,.

• - ~. ; ~ _ -~ .~h~dt~r the ~ ~osnmi r~ea c~ton _ has f ly closed debate an this issue art •';.

t _ _ .. . .

vvh~#fter Par~irnani wo~#~ cansic~r the of the ~4e of monks ~n ~ mor+~ ~~some basis.

.. .~ _ • ~ . ~ .. ' ~Cl~ question ~tt~ h~s~ r fs ~rhQttier Ehe CC~4 mould ~ndude a gen~rsl ~arov~an specifying -

-~ . , ~ ~ • that #ham ~mo r tmest be h~de~ndent~or c~n°t~rest+~d~ o~ car langa~age #hat ~.ddt~sses confCcts,• 2'~ ~ r

~~, - ~ - ~ of leit~r~#. • tf ~o, ~ how t1~ mesh vvath ttt~ s c~ t~duct of ttt~ tiny prafesslan_ as .,.

~-~ . . ~ s~~-regiata~n8~ IdYhai r +~u~eftr~r shams be.~rolvp#~d to. ~sune pract~onees fut~# their duties

~, - - _ ... w~fi ~ a hig~i !suet, a# ir~te~s~ty~'! 111~t~!' are:. ~e - P~~~ PW~Y 9~s the ca~fyireg . is aimed at

:.: ~ achie~rtg?.' ~ '~ ~saaific~ectt~• tfia~ , cone~nt ~, mut~p~e ~ of a prafesstcxtsl, ~tai~ a~ ° ..

' `. - pt~vartaly • ado ed recoh~r - ~ncf court n~ ~ ?Eve where parties consent to ~ .

j ~ ' ~, ~ ~ ~ ~ = ~oiv~ncy prof ona6s g ~n mute rates; ~ ilte~re er.~► be a #urt~ter cc~r~cem that fidt~iaries ~ • .{ - . • ~ ~ 'rimes# be held to ~ sir Man i than the morals of ~e m~rft taco sg0 ~ ~ . . .

~,• _... . ~lt#S~F3t" ~ tS 1[V~f~~Y1~f' Oi' lt4~ ~B S~Q~CttT11841~ .~3'~CB'8S 5fldl~ t~i8R~9. ~'iU~~i~j/, •~@ 1130~1~aF

.~ . .' ~ '. • . is ai d by #h~ deb#o~ ~rict s~nction~d ~ttu~ c~ur~ fn.t~ lri~iat St~y~t~rdert often vn an ex paFte'~. bass w1th ~lttte or•no noire t;~ ct~~. ~Shoutd there ~ a ~requ~r~mer~t that the deb~oc first sssk

• • - - • 1..••~ - ~ .. tha~ ir~ut or app~raF of senor. s~ect~d'arediiors? ~Id ~ reyukem~nt pr~juc~Cce tha Eess '

.. ~ . . ~ soh ted credlt~rs such ~s emptoyees or lade, s~Pr~ers? does the ctaereni sy~tetri~ wtiic#~ • ~ . .:' ~ ~ ~ ~ . ~ provers a corm kra~~c cause, '~i pravida ~oa~ grew a ~rc~a fay cr~ed~fiors is come before the- ~ j • : ~ ~

.. ~~ vurt with a motion fo set aside the e~poin~nt of the mor~tor, par~cutarfy groan t#~e~very fisnesen t+~e ~tut~e o~ ~ G"~~iA p~eed~tg7 . ~tstead,. d there. tse a process shanty after the

• ~ ~ appa~itmen! for ~ic~ldars to the a~a3rq~n~rrt. as.the 1iCfCAlRP 1Naa~ng Grog. . ~ • ~ ~ . •' : has recoirrt~t'ut~d? Shc~uid t}~ 81A and ~GAA be brougfit ~i lirt~ w~#h one anofhe~, in, ~ecros of

. else r~iin'k~g_ the appo~ntrn~t4 cf ~e trustee in a prop~sa~ ~roceedirt~? 1PUouid this unnaCessar~y ,add #irrte attd c~ for' due e ~ne~ts? TJl~ny of these ~}uest~vns go back 90 the disc~sss~ar~

. i~f t ~s the rod ~ tip r~cKa~tor in a C~~1 ~prace ng end e tra~te~ in ~ BdA propasat

_. - .

~ ~frlei~h~ v. ~rtlmo~: X49 i+F,~'. 458 {I928) ~t ~b4,

F .. - .~, .

~, ~ pr~c~eding. .ire 1f~ere ~ ~uiar t~acros ~r pc~ntia! cFonfi c~i int~st ~n e~th~ the ~ppoir~tmer~t

• ~ piss ~r to ~#~ of ~u~~ tl~t shcu[d be ~actdress~i ff~rough statutory reform? ~ ~ - - -

. C?r~e qu on that a w~ the le ativve reform Rrocess is what u~r~1f be the sca#~e of ~i~losure

r~agt~re~d do of possf#~e oon~cts of. lr~~st. 1'h~ quesfiar~ has b8~tt a temporal and

:. ~ .me#~~e~i~ ~ f~ it, T3~e q~ iari fior Cat~a~'s e+~v3ew of the te~istat~on is haw far back muss ~ .

.~ any. ~ yes go a~d_what ~s the scope of re~~#ianshi~s that must be disctose~-?~. Sho~td'there.:be s~ for ~~ rr~nJmcrs ~f .h~ps~or sf~ocitd ghe~re be-a s~andar+d cif ~~te~iit~ Sttauld ~ .

• ~ ~►e monitor b~ Een ~th ~t~e r~ vn "atiaut what ~ • made~al ~rt~ #t» .psis of ps~afessionat-, .: . :. . assessa~rterit ari~~leave any complaints ~ seff-reg ion or should this bg «~t~~d in the ~s~~hat~s?.. .

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'T~e Is~ohrency In of Cettada .and the :Caitad~n :Assoc don: of ;insolv~r~cy`' and '.- - , ~ ~ ~ Re~ntct~iiing Professor !n ter Jo[rt Task ~Fons~~ Repot to tt~ Senate ,committee on revsew . ' , ~ .

. .: . . ~ - .of fie B1A and #ie~CG~tA reca~itmended•t~tt~mor .~e giv~n.tt~a~~►wearto .axami~.arid~act.or~ ... - ... ~ t,, . :~. .: ,. t . ..fevter~rable ~tra~sact~c~r~.'~` 1~/h8e _ not' e ly • nddre ~y 4he • ~~Ee ~omn~it~e~ ~~ ~ i~r~s~tn~rtda s, fi,itt#ther ctfn~dere~bn of this r+~omnr~tenr~afion by! i'art~sr~er~! ;r~esds~ta Ja~d~i~ess

`; - . . the ~i~ks poked by ~plac~ng _a ir~csni~ar~ ~tl~! has a prior accounting or .atadit reta~oris~iip, with fhe ~ . ~ , ._ ~ ~ - ' debtor lm. a pos~n ~~ of ~rivsst~g~ng Pre:~ting ~• ~ialms. , ~ T#~e.. lsst~e ~ ~whet~+e~~; tFt~ creates a _-~• . • - , ~rohtb~io~+ o~ g at ~ aTI, ~ whether ~: is' e~ , t~ "a~r~a~t :o~'`~~~s af~the...marii~r~s . " `

• . ~. ~ ~ ~d s to a ~rtaly indeper~r~ Irist~lven~}r ~irofessior~si. _ . - : ~' ~ . : :'` : . ~ . '. ~ ° ~ .

~ ~_ ~ ~ . . . F"~r~a~►,: !a d~~ ruts cf prvfess#~na~, conduct .by the CAlRP . ttio~gh#ful, ~it .rnay be~ tir~n~ to ~ . ._ , ,r . : ... . . :resit t~i~m, iri~ otter to vertfy fhat ~ejr are. sb~ti ~ at~d--appr~pr~ate..:,E~r.~ e p~e,:~e 1?

. e~. that: the ~p cu~al_ ~hha~l 'riot disclose ov~~~ rf--i~~tio,~: ;~o,~es~~g ~•prc~#essic~~ia) , erigaigem~nt. urri~ss ~ ~rsquir~d' ~o 'r!o so by~ law.~'~ . It .ls •:c~d~r ..that .this rule.asiegitataly: ~ddr~sses- the coni~x cor~fidenf~altty issc~s faced : by.• Ir~tve~c~r ;p ssion~t

~, •. • en$ ~' mutter ~roSes. ~'he'~ may at~s~~need to~ be ~~ome ci~ael~E' +~: of•_a,~ny ditferertces ',• - - .. •j•. ' .. .beiv~r~en ria#es ate genera# pxft leis: ~ ~ _ '. ~ .-: - e ' . ~ .. r .. ';. . . . ~ . .

_:,..T~ s~cu~sio~ti ~ has r~is~d ~ "rnat+e ~qua~at~ #ten . ~ns~rets. :1~Uf~~e ihe: profession on , !~i ther -- . - ~.c r+cfa[I sofa acrd t ie persarta! ~ 9~PRrir~q with bath confttcts c~res~ic~ts ~rtd tt~e ques~on . ~. .. .. ;, .,~f P~~ P$'~F~~. ##teiB are not eFasy aaswe~s. , !ri. part, fps, ~~ a-fusic~or~ of~ the very Bole of .erisotvericy. professic~n~, v~f~ doh trot ~ fit easily ether -i~o. true pu~'e ~cfvocacy rode or thei ~ . - .,disfint$ d c~t~ a#~t~~~ra~s. On ~~e personal ~,-trustees t#~al with ~~ta~viduat~~ln ex#rem~~y

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[St Tli~ ~YYSOtV~Cy ~tt1tC ~ 4~iC ~":IIIi Li~El O~ Ii1S0~V`@Y1C~ Sit{ R~521t3ChLiEIlg .Pr~ofessianais..lo~rtr Task Fr~n~ an r~ess Insatvencv Law Refo~rn_ ~►aport. {Ni t 15.2QQ?) at 33.

. .. .. p= CAMP Rx of Praf~si4t~I Cr~a~uct. su~r~e. ncat~ 8 ~C 1. ~ • .t

.~I _ . .

.. vc~rinerabte s~~t~n~s, wt~o hive f~nr resources to work ~hr+ough weir ~triar~i~l stress. "TrtisteF:s . . ~: ~~

Y mu3i~pEe colt that 8r~e c~ta~nc~ng end which r~qu~r$ h~rt~t~r co tuatizat~an ~ w~a are tnriy

~~promot~ an ~ ~ ~ ar~d fair system. There should bs ~ me is~n in.place ~ ensure that

~: pers~sl ds~tors fti~y t~d~rstend tie tale semi abb~gations of the trustee.' with cemrrn~i~atian .

~arding those dut~s$ ser~si~ve to ~ as s of race, class ~d Ens~ish w Frera~ : a~, the detita~'s - ~ .

~ecor~d fangua~s. 1Afheri~ the insohrency.pr+oFfess~att~l ~S ec~g for~muEtl;iie partl~s~ t~iis rtee~s to

. .. ~ lie very p nt, ~cluc~ng s#gr~altirtg ~rn~ts of this mut e roi~ hi: terms , of tack o~

. ~ ~ cot~t~t~ti~itty, ttas course of ar.~on in fhe +event of of ~t~t st, and using parts Y~ se c

. ~ ir~p~nder[t leg~1 mice: Camrrt~rc~~l insatt~cy prs~,it~iners ~tso ~ac~ c~allera~es in tt9rm~ of

. - .. - w~tom y nt ~rtd the cC lt~f°~~r~rtt ~n and ~ .~ mu9$~pie r~Ees, There. ~s-a.4ensign

' tl~e ewoFving ro!e +af the moor or p tru~Gee ~r~ ~ the need ~. to act ~s c~ur~ ~ .

e~poi~d o~c~r in rsprement~ng end t~nskiet~ii~g the i~ ~ofi ~! st~teEtvfd~ars. .~issUes of,

.. . ~ cor~i~ and pu~c tntst m~ only tlmo~h~ cantirw~d ~ntbfic ~o0{cy +debate about the

obi ~ ,oE the tie ~r~e~i toi~ ~ i~olv~ncy profe~sion~is' ~~n ~ti~t sy~t~m~ end a ~ ~ .

~tBngr #o ac~dre~s the "mast probl~rriat~c ch~~cig~s in terms of araie~s~€onai .~#~ucs .and

a~ of irt~est.

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