Canada Post, a venerable institution which has been delivering our mail since 100 years before confederation, is possibly facing the end of its viability to Canadians. New technologies, from the fax machine to email and video chats, have left the corporation dealing with its lowest ever volume of delivered letter mail.
If monies are advanced to a company by its shareholders, is such advance debt or equity? This can be an important question in insolvency matters. If the monies are debt and secured by a registered security agreement, then the shareholder will be entitled to payment ahead of the ordinary, unsecured creditors of the company. On the other hand, if the monies are equity, then the shareholder's right to repayment of them will be postponed behind the rights of all of the company's creditors, both secured and unsecured.
The Canada Revenue Agency (CRA) routinely takes a litigious approach whenever its deemed-trust rights appear to be challenged. But the recent ruling in Travellers Insurance v. Elite Builders indicates that mortgage lenders can take some confidence they are protected from CRA legal actions against mortgage debtors.