In some circumstances, a strata corporation may make the decision to dissolve itself. Half a year ago, the government passed a new law allowing strata corporations to terminate with less than a unanimous vote. Although no longer new, the law is still relatively unknown, but its importance cannot be discounted for strata corporations that wish to terminate.
Under the Bankruptcy and Insolvency Act (BIA) and the Companies' Creditors Arrangement Act (CCAA), companies in financial straits may seek a stay of proceedings in order to given the company time to devise a proposal to creditors under the BIA (Proposal) or a plan or arrangement and compromise to creditors under the CCAA (Plan) rather than declare bankruptcy. The Proposal or Plan will address compromises on amounts owing and the timing of repayment. If the Proposal or Plan is approved by the creditors and the court, the arrangement allows a company to manage debt while continuing to operate its business.
Canada's Farm Debt Mediation Act ("FDMA") regulates disputes between farmers and their creditors and mandates unique procedures for secured creditors seeking to enforce on their debts. The FDMA provides a framework whereby insolvent commercial farmers can obtain a stay of any proceedings against them, and, with the assistance of a specially appointed administrator, direct a review of the farmer's financial affairs or even require mediation between the farmer and his or her creditors.