6 December 2011 TEI Roundtable, 2011-0427101C6 - Seizure of Property -- summary under Subsection 79.1(2)

In response to a submission that s. 79.1 should apply where the property seized by a creditor includes shares of the debtor or a partnership interest in the debtor, CRA first noted that "the property referred to in paragraph 79.1(2)(a)...is not limited to, a property used to secure the debt referred to in paragraph 79.1(2)(b)," CRA then stated that in order for s. 79.1 to apply, the property which is seized

must have been held by the debtor and would not include an ownership interest in the debtor (i.e., would not include shares of, or a partnership interest in, the debtor.

S. 79.1 also will not apply if a subsidiary of the creditor acquires the beneficial ownership of assets of the debtor as a consequence of the debtor's failure to pay.

General comments on the meaning of beneficial ownership.

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