By: Jassmine Girgis
Case commented on: Poonian v British Columbia (Securities Commission), 2024 SCC 28 (CanLII)
With the release of Poonian v British Columbia (Securities Commission), 2024 SCC 28 (CanLII), the Supreme Court of Canada has settled the question about the status of provincial securities commissions’ unpaid administrative penalties and discharge orders upon a bankrupt’s discharge. The Court determined that administrative penalties do not fall under the statutory exceptions in sections 178(1)(a) or (e) of the Bankruptcy and Insolvency Act, RSC 1985, c B-3 (BIA) meaning these penalties are discharged upon a bankrupt’s discharge. Disgorgement orders, however, are captured by the s 178(1)(e) exception, and will not be discharged.
