Directions for Conservatory Measures to the Official Receiver—
What is a conservatory measure?
The Superintendent of Bankruptcy puts in place conservatory measures when a bankruptcy or insolvency estate needs protection. It might be in cases of Licensed Insolvency Trustee (LIT) malfeasance or if serious wrongdoing on the part of a LIT puts estate files at risk. Conservatory measures may also be put in place if a LIT becomes ill or dies without a valid succession agreement. Finally, conservatory measures may be put in place if a LIT, for whatever reason, has allowed the administration of his or her practice to become substandard.
In the matter of:
Sidney Charles Schiff
Schiff & Associates Inc.
Directions for Conservatory Measures
(Section 14.03 of the Bankruptcy and Insolvency Act)
Whereas the Bankruptcy and Insolvency Act (the Act) provides the Superintendent of Bankruptcy (the Superintendent) with the general power to supervise the administration of all estates and matters to which the Act applies;
Whereas Sidney Charles Schiff (the trustee) is the holder of an individual license as trustee in bankruptcy;
Whereas Schiff & Associates Inc. (the trustee) is the holder of a corporate trustee license;
Whereas during the course of an investigation regarding the corporate trustee Schiff & Associates Inc. and individual trustee Sidney Charles Schiff, the delegate of the Superintendent, Karen Smith, issued conservatory measures with a view to protecting the estates on February 15, 2006;
Whereas the measures previously issued were not directed at files in which the trustees have been discharged;
Whereas in files in which the trustees have already obtained their discharge, there could remain certain actions to perform in order to complete the administration;
Whereas I believe on reasonable grounds that the estates require protection;
Whereas the Superintendent may, for the protection of an estate, exercise the powers set out in subsection 14.03(1) of the Act, in the circumstances referred to in section 14.03(2) of the Act;
Whereas the Superintendent has delegated to me, in accordance with section 14.01(2) of the Act, the powers of the Superintendent as specified in section 14.03(1) of the Act, in the circumstance referred to in section 14.03(2)(b), a copy of which delegation is attached, along with copies of sections 14.01, 14.02 and 14.03 of the Act;
Whereas subsections 14.03(1)(b) and (c) and (2)(b) the Act apply;
I, Ann Speers, in my capacity as delegate for the Superintendent, direct:
The Official Receiver, to take possession and control of the property of the bankruptcy and proposal estates and the estate files, and also of accounting and electronic data related to estate files administered by Sidney Charles Schiff and Schiff & Associates Inc., of such closed estates as and when identified by the Guardian Trustee as being in need of administration, wherever they may be located and to remit them to Mr. Glenn Steiner agent of the Office of the Superintendent of Bankruptcy, 600 – 25 St. Clair Avenue East, Toronto, Ontario, M4T 1M2.
To enforce these directions, the Official Receiver may seek the help of all the persons he or she considers necessary.
These directions take effect immediately and will stay in place until further notice.
In accordance with subsection 14.03(3) of the Act, these directions bind their addressees, who must comply with them;
In accordance with subsection 14.03(4) of the Act, a person who complies with these directions is not liable for any act done by the person only to comply with them.
Signed at the City of Toronto Ontario this 19th day of December, 2006.
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