Bijural Terminology Records

Common Law

fidelity bond

Civil Law

fidelity insurance

Title of the Legislative Text

Canada Business Corporations Act, R.S.C., 1985, c. C-44

Provision

223. ...
(4) A liquidator shall give notice of their intention to make an application under subsection (2) to the Director, to each inspector appointed under section 217, to each shareholder and to any person who provided a security or fidelity bond for the liquidation, and shall publish the notice in a newspaper published or distributed in the place where the corporation has its registered office, or as otherwise directed by the court.

Problem

Fidelity bonds are considered insurance rather than security. As well, the concept of "assurance-responsabilité" is used incorrectly in the French version for both civil law and common law. "Assurance détournement et vol" is the preferable concept.

Although the concept of "fidelity bond" can be replaced by "fidelity insurance" in the English version, the term "fidelity bond" is kept, since it is commonly used in common law.

Solution

In the English version, "or fidelity insurance" is added.

In the French version, "assurance-responsabilité" is replaced by "assurance détournement et vol".

Harmonized Provision

223. ...
(4) A liquidator shall give notice of their intention to make an application under subsection (2) to the Director, to each inspector appointed under section 217, to each shareholder and to any person who provided a security, fidelity bond or fidelity insurance for the liquidation, and shall publish the notice in a newspaper published or distributed in the place where the corporation has its registered office, or as otherwise directed by the court.

Federal Law-Civil Law Harmonization Act, No. 3, S.C. 2011, c. 21, s. 64.