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Inside Internal Controls

News and discussion on implementing risk management

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fraudulent schemes

When a debtor puts assets out of reach: Use of fraudulent conveyance proceedings to recover debts

Getting a judgment isn’t the only challenging aspect of a legal dispute; collecting on a judgment can present a whole new set of challenges. Some parties actively make efforts to judgment proof themselves by alienating their assets. While such conduct can be appropriate, in certain circumstances it can trigger the Fraudulent Conveyance Act (the “Act”). The Act serves as a tool to help creditors get to assets that debtors have inappropriately alienated from themselves.

 

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M&A disputes: When will a corporation be liable for an officer’s or director’s fraud? Supreme Court provides new guidance

Should a corporation be liable for fraud committed by its director or officer where it may also have benefitted? The Supreme Court of Canada grappled with this question recently in the context of a dispute arising from a fraudulent investment scheme to acquire commercial real estate.

 

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Charity how to: What to do when faced with an issue of non-compliance

When a charity becomes aware that it has been non-compliant with either the Income Tax Act or the common law, it can cause great anxiety within the organization. According to the CRA, however, most non-compliance issues are “unintentional, accidental, and often of low material consequence,” and they encourage charities to disclose any non-compliance issue to the Charities Directorate. Non-compliance issues that charities might experience include:

 

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