C-309 – An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (public institutions) – makes it so certain public companies will no longer be allowed to file for bankruptcy.
Basically any public institution that receives government funding or direction will lose the ability to file for bankruptcy. This was written in response to Laurentian University filing for bankruptcy and using it to cut staff and programs. (A provincial audit later found that Laurentian had other options, but went with bankruptcy instead.)
Progress
C-309 is outside of the Order of Precedence.
It’s possible that C-309 won’t proceed even if it gets on the Order. C-59, a government budget bill, is excluding postsecondary institutions from filing bankruptcy. C-309 covers a wider range of institutions, but C-59 still gets at the problem of schools claiming bankruptcy.