What can I do if I have a judgment against a corporation that has no assets in Ontario?

A judgment against an insolvent or asset-stripped corporation can be very difficult to collect. If the company has genuinely dissolved or disposed of all its assets legitimately, your judgment may be uncollectable from the corporation itself.

Your first step should be to conduct an examination in aid of execution to ask the corporation's officers or directors about its assets, recent transactions, and financial history. This may reveal bank accounts you did not know about, accounts receivable, or property registered in the company's name.

If assets were transferred out of the corporation in the period leading up to your judgment — particularly to related parties or at less than fair value — you may have grounds to challenge those transfers under the Fraudulent Conveyances Act or similar legislation. A court can set aside a fraudulent or preferential transfer and restore the assets to the company for your enforcement benefit.

If the directors personally committed wrongs that caused your loss — such as fraud, negligence in their personal capacity, or breaches of specific statutory duties — you may be able to sue them personally. Under Ontario's Business Corporations Act, directors are personally liable for unpaid wages and certain other statutory obligations.

If the company becomes bankrupt and a Licensed Insolvency Trustee is appointed, the trustee will investigate transactions and may recover assets for all creditors. Filing a proof of claim with the trustee is the way to participate in that process.

Collecting from a shell corporation is genuinely difficult. Legal advice can help you assess which remedies, if any, have a realistic prospect of recovery.