Canada launches consultation to protect public interest in postsecondary insolvency cases

The Government of Canada has launched a consultation process to assess how it can better protect the public interest in the instance of a postsecondary institution’s insolvency. The government is actively seeking feedback from universities, experts, and other stakeholders in an effort to mitigate the challenges posed by postsecondary insolvency to faculty, staff, students, and communities. “What happened at Laurentian University has raised concerns as to whether our current insolvency laws are fit for purpose to help publicly funded post-secondary institutions resolve financial distress,” said Federal Minister of Innovation, Science, and Industry François-Philippe Champagne. CAUT also issued a statement welcoming the announcement, adding that “insolvency laws are misaligned with the goals” of public postsecondary institutions.