Directions for the Removal of 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: Donna M. Leitch
Directions for the Removal of 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 the Superintendent may, in order to protect the estate records and property, exercise the powers set out in subsection 14.03(1)of the Act, under the circumstances referred to in subsection 14.03(2) of the Act;
Whereas Donna M. Leitch (the trustee) is the holder of an individual license as trustee in bankruptcy;
Whereas on July 15, 2009, Darrin Ulley, a person to whom the Superintendent had delegated his powers as specified in subsection 14.03(1) of the Act, directed the Official Receiver to not appoint Donna M. Leitch in respect of any new estates until a decision was made under subsection 13.2(5) or 14.01(1) of the Act or the person with the delegated power was satisfied that the estates no longer require protection;
Whereas the Superintendent has delegated to me, in accordance with subsection 14.01(2), the powers of the Superintendent as specified in subsection 14.03(1) of the Act, in the circumstances referred to in subsection 14.03(2) of the Act, a copy of which delegation is attached, along with copies of sections 14.01, 14.02 and 14.03 of the Act;
Whereas on March 31, 2011, Donna M. Leitch provided the Superintendent with a written undertaking whereby she voluntarily undertook to not accept any appointments in respect of any new estates and agreed that any failure on her part to comply with the said undertaking shall constitute a contravention of paragraph 13.2(5)(b) of the Act. This undertaking will be vacated by the decision affecting the license of Donna M. Leitch under, or by the withdrawal of, the proceedings under subsection 14.01(1) of the Act;
I, Abubakar Khan, in my capacity as delegate for the Superintendent, remove the directions for conservatory measures issued to the Official Receiver on July 15, 2009;
That in accordance with subsection 14.03(3) of the Act, these directions bind the Official Receiver, who must comply with them;
That, pursuant to subsection 14.03(4) of the Act, a person who complies with these directions is not liable for any act done by that person only to comply with these directions.
Signed at the City of Toronto, Ontario, this 31st day of March, 2011
Office of the Superintendent of Bankruptcy
This document has been reproduced as submitted by the delegate of the Superintendent of Bankruptcy.
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