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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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