Federal Laws Changed to Prevent Corporate-Style Bankruptcy Proceedings at Universities

Federal legislation that  excludes public universities from the Companies’ Creditors Arrangement Act (CCAA), and Bankruptcy and Insolvency Act (BIA) received  Royal Assent on June 20.

The two acts were used in 2021 by the administration at Laurentian University to file for bankruptcy following years of financial mismanagement and overspending on infrastructure. This resulted in the closure of dozens of undergraduate and graduate programs and the layoff of 195 faculty and staff members.

More details on the new legislation from  the OCUFA webpage

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