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25 Can. B. Rev. 587 (1947)
Reorganizations under the Companies' Creditors Arrangement Act

handle is hein.journals/canbarev25 and id is 605 raw text is: REORGANIZATIONS UNDER THE COMPANIES' CREDITORS ARRANGEMENT ACT STANLEY E. EDWARDS Calgary Introduction The Companies' Creditors Arrangement Act' (which I will refer to as the C.C.A.A.) poses many interesting problems and has great potential importance. In spite of this, it has received little attention in either Canadian legal literature or the decisions of the courts. This Act was passed during the depression to pro- vide a means by which an insolvent company could avoid or get out of bankruptcy by composing or rearranging the rights of its shareholders and creditors, and thereby maintain its going con- cern value. This process is called reorganization. For the sake of simplicity I will consider the C.C.A.A. only as applied con- jointly with section 123 of the Dominion Companies' Act, although section 19 provides that it may likewise be invoked in conjunction with similar provisions in any of the provincial incorporation statutes. Summary In this article I will discuss the main problems which counsel and the courts will face in applying the Act, and suggest an approach for their solution. It may be useful to provide here a summary of the points to be dealt with, for the convenience of those who desire it. 1. A brief general description of a reorganization as carried out under the C.C.A.A. and the responsibility of counsel and the court. 2. The importance of the C.C.A.A. 3. The value of examining the reorganization law developed in the United States. 4. A statement of the usual purpose of reorganization. 5. The public interest as a factor to be considered. 6. The problem of making the plan feasible. 7. The problems of fairness and equitableness. 8. A consideration of the position of the corporate manage- ment. 1 23-24 George V, 1932-33, c. 36.

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