Consumer proposals and shareholder loans

December 14th, 2006 by Questions

Can shareholder loans be part of a consumer proposal ? I’am a director and majority shareholder of my incorporated business. I took a shareholder loan from the company last year and it is payable now. I have other unsecured debt for which I want to file a consumer proposal. Can I include this shareholder loan as part of the proposal?


One Response to “Consumer proposals and shareholder loans”

, Barton Goth, GCO Inc. Bankruptcy Trustees said:

As there is nothing in the Bankruptcy and Insolvency Act that prevents this and this is a claim that can be cleared by successfully completing consumer proposal. Although, as the corporation would be considered a non-arms length creditor they (i.e. the corporation) would not be eligible to vote in favor of the proposal, it would be necessary to have the majority of the other creditors support.

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