This week’s decision comes from Alberta – Alberta Securities Commission v. Hennig, 2020 ABQB 48.
 This is an application by the Alberta Securities Commission for a declaration that an administrative penalty levied against Theodor Hennig survives his discharge as a bankrupt pursuant to subsections 178(1)(a), (d) and (e) of the Bankruptcy and Insolvency Act, R.S. 1985, c B-3. The administrative penalty arose from the findings of a panel of the Securities Commission that Mr. Hennig was responsible for misrepresentations in the financial statements of a public company of which he was a director and officer, that he obtained financial benefits as a result of non-disclosure of material facts, that he participated in market manipulation which resulted in artificial prices for another company, and that he made ongoing misrepresentations to Commission staff, all contrary to the public interest.2020 ABQB 48
This decision analyses the meaning of the term “offence” as used in s. 178(1)(a) of the BIA and whether it includes administrative penalties ordered by the securities commission. Justice Romaine found that:
81] The Applicant is entitled to the following relief:
a) a declaration that the judgment arising from the administrative penalty survives Mr. Hennig’s bankruptcy pursuant to subsection 178(1)(e) of the BIA;
b) a direction requiring Mr. Hennig to show cause why a new judgment should not be granted as against him; and
c) an order renewing the judgment for a period of ten years, and granting the Alberta Securities Commission a new judgment against Mr. Hennig pursuant to Rule 9.21 of the Alberta Rules of Court for the amounts remaining due and unpaid on the judgment.
Further commentary is available from this article from The Lawyers Daily.
This week’s decision concerns an application for an oppression remedy: Caughlin v. Canadian Payroll Systems Inc., 2019 MBQB 6.
Caughlin … alleges that the conduct of Lyle and CPS has been oppressive and unfairly prejudicial and that there has been an unfair disregard for his interests. Caughlin seeks a remedy to address the inequitable conduct and activities of Lyle and CPS. Para. 3
As noted by Harris, J., s. 234(2) of The Corporations Act, C.C.S.M. c. C225 explains the grounds for seeking an oppression remedy, and the leading case is BCE Inc. v. 1976 Debentureholders, 2008 SCC 69.
Law in the Library is a free program offered by the Winnipeg Public Library in conjunction with the Community Legal Education Association. This program offers free sessions on various areas of law, presented by professionals.
Registration through the Winnipeg Public Library is required.
The upcoming sessions are:
Thursday, September 13: 6:30- 8 pm. Register
Tuesday, October 2: 6:30-8 pm. Register
Monday, October 15: 6:30 – 8pm. Register
Tuesday, October 30: 12 – 1 pm. Register
Thursday, November 1: 6:30-8 pm. Register
Monday, November 5: 5:30-7:30 pm. Register
On Tuesday, May 29th the Winnipeg Public Library in conjunction with Community Legal Education Association is hosting a free session on Small Business and the Law as part of their Law in the Library program.
Lawyer Samuel Goszer, of Duboff Edwards Haight & Schachter Law Corporation will be speaking on different forms of business organization and licencing and legal requirements.
Registration is required. Click HERE for more information.
To keep up to date with what is happening around Winnipeg, we are featuring a display of some of our texts on business law to help you and your clients.
If you’re looking to take out any of these books, please see a staff member. (48 hour loan period).