Bijural Terminology Records

Common Law

obligations of the inspector to the estate to act in good faith for the general interests of the administration of the estate

Civil Law

obligations of the inspector to the estate to act in good faith for the general interests of the administration of the estate

Title of the Legislative Text

Bankruptcy and Insolvency Act, R.S.C. (1985), c. B-3

Provision

  120. (6) An inspector duly authorized by the creditors or by the other inspectors to perform special services for the estate may be allowed a special fee for those services, subject to approval of the court, which may vary that fee as it deems proper having regard to the nature of the services rendered in relation to the fiduciary obligations of the inspector to the estate.

Problem

The term "fiduciary obligations" and the corresponding French term obligations fiduciaires are common law terms. Given the context, these terms lead to some confusion in civil law since what is meant here is the obligation to act in good faith.

Solution

In the English version, the term "fiduciary obligations of the inspector to the estate" is replaced by the phrase "the obligations of the inspector to the estate to act in good faith for the general interests of the administration of the estate". In the French version, the term obligations fiduciaires de l'inspecteur envers l'actif is replaced by the phrase l'obligation qu'a l'inspecteur d'agir de bonne foi en vue de l'intérêt général de l'administration de l'actif.

Harmonized Provision

  120. (6) An inspector duly authorized by the creditors or by the other inspectors to perform special services for the estate may be allowed a special fee for those services, subject to approval of the court, which may vary that fee as it deems proper having regard to the nature of the services rendered in relation to the obligations of the inspector to the estate to act in good faith for the general interests of the administration of the estate.

Federal Law-Civil Law Harmonization Act, No. 1, S.C. 2001, c. 4, s. 30

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