Under the Bankruptcy and Insolvency Act, a “receiver” includes a person appointed by the court under s. 243(1) and, in some circumstances, a person who takes possession or control of all or substantially all of an insolvent person’s business property under a security agreement or another qualifying court order.

A court-appointed receiver is a receiver appointed by the court, usually on the application of a secured creditor, where the court considers it “just or convenient” to do so. At the Ontario level, the court also has interlocutory power under s. 101 of the Courts of Justice Act to appoint a receiver or receiver and manager where it appears just or convenient.

No. The BIA definition of “receiver” is broad enough to include certain receivers acting under a security agreement as well as court-appointed receivers. That said, many of the most important Ontario litigation questions arise in court-appointed receiverships.

Under BIA s. 243(1), a secured creditor may apply to the court for the appointment of a receiver. In Ontario, Rule 41.02 of the Rules of Civil Procedure also provides that appointment of a receiver under CJA s. 101 may be obtained by motion to a judge in a pending or intended proceeding.

The governing statutory language is whether appointment is “just or convenient.” Under the BIA, the court may appoint a receiver if it considers that just or convenient; Ontario’s CJA s. 101(1) uses the same formulation for interlocutory appointment.

Often, yes. Where a secured creditor intends to enforce security on all or substantially all of an insolvent person’s inventory, accounts receivable, or other business property, BIA s. 244(1) requires notice, and s. 244(2) generally prohibits enforcement until 10 days after the notice is sent. Under s. 243(1.1), the court generally may not appoint a receiver before that 10-day period expires unless the debtor consents to earlier enforcement or the court considers earlier appointment appropriate.

Yes. The BIA expressly allows earlier appointment if the insolvent person consents to earlier enforcement after notice, or if the court considers earlier appointment appropriate.

Under BIA s. 243(1), the court may authorize a receiver to take possession of all or substantially all of the debtor’s inventory, accounts receivable, or other business property used in relation to the business, to exercise control over that property and the business, and to take any other action the court considers advisable.

Yes, if the order provides for that. Under Rule 41.03(c), an Ontario order appointing a receiver must state whether the receiver is also appointed as manager and, if necessary, define the scope of the receiver’s managerial powers.

Very much. Under Rule 41.03, the order must identify the appointee, address any required security, state whether the receiver is also manager, define managerial scope if needed, and contain whatever directions and terms are just. In practice, the order is central to what the receiver may and may not do.

For appointments under BIA s. 243(1), and for certain receivers under the Part XI definition, the Act says that only a trustee may be appointed.

Yes. Under BIA s. 246(1), a receiver must prepare an initial statement after taking possession or control, and under s. 246(3), on completion of its duties it must prepare a final report and statement of accounts and provide them to the Superintendent and, on request, to creditors within the statutory window.

Under BIA s. 248(1), the Superintendent, the insolvent person, the trustee (if there is a bankrupt), the receiver, or a creditor may apply to court if the secured creditor, receiver, or insolvent person is failing or has failed to carry out duties imposed by ss. 244–247.

Under BIA s. 248(2), the Superintendent, the insolvent person, the trustee (if there is a bankrupt), or a creditor may apply to have the receiver’s statement of accounts reviewed and the fees adjusted. The application must be brought within six months after the statement of accounts was provided to the Superintendent under s. 246(3)

Yes. Under BIA s. 248(1)(b), the court may restrain the secured creditor or receiver from realizing on or otherwise dealing with the property until the relevant duty has been carried out.

Yes. Under BIA s. 249, a receiver may apply to the court for directions in relation to any provision of Part XI of the Act, and Rule 41.05 also allows a receiver to obtain directions by motion unless the conduct of the receivership has been referred.

Under BIA s. 250, an order under s. 248 or a direction under s. 249 prevails over inconsistent terms in the security agreement, the appointing order, or another order of the appointing court, to the extent of the inconsistency.

If a receiver is appointed under BIA s. 243(1), the court may make orders respecting the receiver’s fees and disbursements, including granting a charge ranking ahead of some or all secured creditors, but only if materially affected secured creditors were given reasonable notice and an opportunity to make representations.

No. Under Rule 41.06, a receiver may be discharged only by order of a judge.

Yes. Under Rule 41.04, an order appointing a receiver may refer the conduct of all or part of the receivership in accordance with Rule 54.

No. The BIA treats secured creditors and receivers in Part XI, while bankruptcy is dealt with elsewhere in the statute. A receivership may occur without a bankruptcy, and a bankruptcy may raise different issues from a receivership.

Yes. In a receivership, BIA s. 81.4 creates a security for certain unpaid wages on current assets in the receiver’s possession or control, subject to the statute’s terms and limits.

Yes. The Ontario Superior Court’s Commercial List Authorities Book still lists Royal Bank v. Soundair Corp. under Receiverships, which confirms it remains a standard authority in Ontario commercial receivership practice.

Major Toronto commercial receivership matters are often heard on the Commercial List, which the Superior Court describes as a specialized list established in 1991 and staffed by judges experienced in managing complex commercial litigation.

Under BIA s. 247, a receiver must act honestly and in good faith and must deal with the property of the insolvent person or bankrupt in a commercially reasonable manner.