bailee

n/a

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

75. An agent or bailee who in good faith, including observance of reasonable commercial standards if the agent or bailee is in the business of buying, selling or otherwise dealing with securities of a corporation, has received securities and sold, pledged or delivered them according to the instructions of their principal is not liable for conversion or for participation in breach of fiduciary duty although the principal has no right to dispose of them.

The linguistic versions differ as to content.

The concept of "bailee" used in the English version is a common law concept much broader than the concept of "dépositaire" used in the French version. The latter does not entirely render the concept of "bailee".

In the French version, "dépositaire" is replaced by "baillaire".

(Amendment to the French version only)

75. Le mandataire ou le baillaire – ayant respecté les normes commerciales raisonnables si, de par sa profession, il négocie les valeurs mobilières d'une société – qui, de bonne foi, a reçu, vendu, donné en gage ou livré ces valeurs mobilières conformément aux instructions de son mandant, ne peut être tenu responsable de détournement ni de violation d'une obligation de représentant, même si le mandant n'avait pas le droit d'aliéner ces valeurs mobilières.

Federal Law-Civil Law Harmonization Act, No. 3, S.C. 2011, c. 21, s. 38.