Official Receiver (1)

Conservatory Measures

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.

Canada

In the matter of:
Bruno Marchand
Georges E. Marchand
Marchand Syndics 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 with the general power to supervise the administration of all estates and matters to which the Act applies;

Whereas the exercise of the powers of the Superintendent of Bankruptcy set out in paragraph 5(3)e) of the Act revealed that the trustees have an abnormally high number of files that have been open more than three years;

Whereas the trustees are also the subject of an investigation under the provisions of section 14.01 of the Act;

Whereas on August 5, 2003 a letter was sent to the trustees giving them 15 business days in which to submit an acceptable closing plan intended, among other things, to reduce to 10% of their inventory the percentage of summary administration files open for more than 36 months and to 40% of their inventory the number of ordinary administration files open for more than 36 months, or to provide the Superintendent of Bankruptcy with a satisfactory explanation as to why the number of files older than three years exceeds these levels;

Whereas despite repeated requests, the trustees did not submit, within the prescribed time, a detailed closing plan in compliance with the requirements of the Superintendent of Bankruptcy;

Whereas the trustees effectively refused to submit a detailed closing plan, submitting only a plan that does not accord any priority to the oldest files, nor to those with large bank balances, which plan does not even set time lines for the various stages of closing, the trustees in question instead chose to challenge the authority of the Office of the Superintendent to require such a closing plan;

Whereas moreover the trustees did not even respect their own closing plan, which had not, for the reasons set out above, been accepted by the Office of the Superintendent;

Whereas the trustees lacked diligence in closing their files, of which the number of ordinary administration estate files open for more than three years, as of February 3, 2004, was 69 administered by the corporate trustee and Bruno Marchand (99% of his total inventory of ordinary administration files), and 133 by the corporate trustee and Georges E. Marchand, 35 of which were under the personal licence of Georges E. Marchand (98% of his total inventory of ordinary administration files);

Whereas some of these estates contain large sums of money which the trustees are not distributing to the creditors;

Whereas the trustees' conduct is prejudicial to the creditors, who are being subjected to undue delays in the payment of their dividends;

Whereas the trustees refuse or neglect to complete the administration of these files, and in so doing, are not rendering their accounts as required by the Act;

Whereas it is not permissible for a fiduciary, such as a bankruptcy trustee, to refuse or neglect to account for his administration;

Whereas the Superintendent of Bankruptcy has reasonable grounds to believe that the estate files require protection and that the administration of these files should be completed as soon as possible;

Whereas the Superintendent of Bankruptcy may, in order to protect estates, exercise the powers set out in subsection 14.03(1) of the Act, under the circumstances anticipated in subsection 14.03(2) of the Act;

Whereas the Superintendent of Bankruptcy has delegated to the undersigned, in accordance with subsection 14.01(2) of the Act, in certain situations mentioned in subsection 14.03(2), the Superintendent's powers as specified at subsection 14.03 (1) of the Act, copies of which delegation are attached, along with copies of subsections 14.01(2) and 14.03(1) to (4) of the Act;

Whereas subsections 14.03(1)a) and b) and (2)b) of the Bankruptcy and Insolvency Act apply;

I, the undersigned, Sylvie Laperrière, in my capacity as Senior Analyst, Professional Conduct, direct: 

The Official Receiver, who may enlist any other individuals required to fully comply with these directions, to take possession and control of the assets and files of the estates listed in Appendix A from trustees Bruno Marchand, Georges E. Marchand and Marchand Syndics Inc., of the books, accounting and computer data associated with them and all the titles and documents related to said assets and files wherever they may be located, particularly at the places of business of the abovementioned trustees at:

  • 1717 Saint-Martin Boulevard West, Suite 210, Laval, Québec
  • 10455 Laverdure Street, Montréal, Quebec

and to take them to the Montréal Division Office of the Superintendent of Bankruptcy, at 5 Place Ville-Marie, 8th floor, Montréal, Quebec, in order to continue administering them or until such time as a guardian trustee is appointed to do so;

These directions take effect immediately and will stay in place until further notice or until a decision is rendered under section 14.01 of the Act.

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, in the City of Sainte-Foy, Quebec February 10, 2004

Sylvie Laperrière
Senior Analyst, Professional Conduct

Annex A – Estate names and Court numbers
File NumberEstate NameCourt Number
41-996592Construction Morano Ltd.500-11-000147-732
41-046019Brosseau, Louis-Philippe500-11-003915-838
41-054600Ouellet, Denis500-11-000706-859
41-054601Ouellet, Sylvie500-11-000706-859
41-057941Plomberie et Chauffage Lachine500-11-003049-851
41-060005Telepro Inc.500-11-000581-864
41-063751Societe Chapichou Inc.500-11-002944-862
41-076258Theodorakakos, Panagiotis500-11-003205-883
41-079209Bistro De La Muse Inc.500-11-000193-892
41-080935Salon 9 Design Inc.500-11-001113-899
41-081645R.O. Albert Inc.500-11-001486-899
41-082131Duguet, Charles500-11-001760-897
41-085533Lunair Architecture Inc.500-11-003497-894
41-086638Installations Electrovit Ltee505-11-000908-892
41-089250Residence De La Rive (2744-9123 Qc Inc.)750-11-000066-909
41-089497Ferdinand, Pierre Jacques500-11-001345-905
41-089646Boulangerie Rome (114621 Canada Inc.)505-11-000342-902
41-091421B. D'amours Construction Ltee500-11-002303-903
41-091894Les Remorques Bedard Inc.500-11-002520-902
41-097724Dorda, Henry760-11-000027-918
41-098768Gauthier, Alain505-11-000176-912
41-099131Materiaux De Plomberie Et Chauffage Du Coteau LtÉE700-11-000201-915
41-101893Boutique Ombrage Inc.500-11-002279-913
41-103039Gagnon Sport Inc.500-11-002825-913
41-1035431847-0641 Quebec Inc. (D.E.S. Marine Enr.)500-11-003070-915
41-105511St-Jacques, Claude500-11-003990-914
41-106078Pilon, Robert500-11-004269-912
41-106610Succession Renald Savoie500-11-004496-911
41-111030Vide Et Traitement Canada Inc.505-11-000029-921
41-117011Valiquette, Noel500-11-002962-922
41-117358Airobec Inc.500-11-003111-925
41-117364Entreprises De Metal Jan-Mir Ltee500-11-003112-923
41-117963Recyclage Electrostatique Ltee500-11-003408-925
41-118554Mercure, Pierre705-11-000454-927
41-122254Les Habitations Premiere Inc.705-11-000709-924
41-123125Pinsonnault, Monique500-11-005589-920
41-149536Bo – Store (2646-8629 Quebec Inc.)700-11-000764-946
41-167835Perron, Gilles Et Al505-11-000726-963
41-175126Choquet, Robert765-11-000147-962
41-184648Dubuc, Manon540-11-000388-969
41-187669Multivan D.B. Inc.500-11-005847-971
41-190454Theoret, Andre500-11-006249-979
41-225951Restaurant Le Diabolo (9049-7538 Qc Inc.)705-11-001863-993
42-015033Metallurgie Farnham Inc.455-11-000030-820
42-017845Daigneault, Jean450-11-000014-880
42-018135Begin, Mario450-11-000156-889
42-030551Desjarlais, Richard455-11-000012-974
42-032007Agri-Lab Inc.460-11-000156-987