Canada

The Corona Crisis leads worldwide to critical situations for companies.
In light of this, Digitorney has asked lawyers from various countries specialized in restructuring law for recommendations on what needs to be done and which solutions are at hand to weather the Corona Crisis.
This part of our series focuses on Canada:

1) When does a company need to file for insolvency in Canada?

Canadian insolvency legislation does not require that a company commence insolvency proceedings.  Rather, Canadian companies are permitted to commence insolvency proceedings, subject to certain conditions. MORE

2) What liability risks exist for the management in Canada in a corporate crisis?

The COVID-19 pandemic has given rise to a number of risks for Canadian corporate management.  The nature of such risks varies by industry, but there are some common themes. Management’s immediate response to the pandemic may be challenged. MORE

3) Is there any state aid available for companies in Canada due to the Corona crisis?

In addressing the COVID-19 pandemic, the Government of Canada has declared a number of support measures in order to aid business owners. The measures to date include inter alia Deferral of Tax Filings and Remittances, Canada Emergency Wage Subsidy (“CEWS”) or Business Credit Availability Program (“BCAP”). MORE

4) What immediate measures should a Canadian company take if it is affected by the Corona crisis?

All Canadian businesses are affected by the COVID-19 pandemic, and the primary concern is for the health and safety of employees, customers and the general public. Consequently, management must first ensure compliance with all applicable public health statutes and regulations. MORE

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