Comments on: Charges laid under the Bankruptcy and Insolvency Act increased in 2007 http://www.bankruptcycanada.com/blog/charges-laid-under-the-bankruptcy-and-insolvency-act-increased-in-2007/ Sun, 12 Feb 2012 08:13:50 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Al Solomon http://www.bankruptcycanada.com/blog/charges-laid-under-the-bankruptcy-and-insolvency-act-increased-in-2007/comment-page-1/#comment-145357 Al Solomon Sun, 08 Feb 2009 03:50:38 +0000 http://www.bankruptcycanada.com/blog/?p=112#comment-145357 What happens when a Trustee in a bankruptcy sells some of the bankrupt's assets without first obtaining the permission of the estate inspectors? Is the transaction ultra vires? Can it be rescinded? I know of a case where a Trustee sold an asset worth over $1 million for only $5,000, but failed to obtain the approval of the inspectors. Is this an ultra vires act that is invalid or reversible? What happens when a Trustee in a bankruptcy sells some of the bankrupt’s assets without first obtaining the permission of the estate inspectors? Is the transaction ultra vires? Can it be rescinded?

I know of a case where a Trustee sold an asset worth over $1 million for only $5,000, but failed to obtain the approval of the inspectors. Is this an ultra vires act that is invalid or reversible?

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