The appellant, Allen Tak Yuen Chan, was the co-founder,
chief executive officer and chairman of the board of directors of
Sino-Forest Corporation (“SFC”), a corporation which had its
head office in Ontario and whose shares traded on the Toronto
 SFC’s subsidiaries carried on an integrated forest plantation and products business with assets located predominately in
the People’s Republic of China (“PRC”).
 Between 2003 and the second quarter of 2011, SFC’s consolidated financial statements reported rapid growth, including in
assets and revenues. A significant portion of the reported assets
in the second quarter of 2011 — some $2.991 billion — was “BVI
standing timber”, that is, standing timber held under what was
known as the “BVI model”. Sales of BVI standing timber accounted for $1.3 billion of SFC’s reported consolidated revenue in
2010, and over 90 per cent of its reported consolidated income.
 Representing BVI standing timber as an asset with significant
value on the SFC financial statements enabled SFC to raise money
in the debt and equity markets — approximately $3 billion up to 2010.
 In June 2011, a report was issued by a short seller’s
research company (the “Muddy Waters Report”) which was, to
say the least, highly critical of SFC. It alleged, among other
things, that SFC did not hold anything close to the full amount of
the timber assets reported on its financial statements and that it
greatly overstated its revenues. SFC formed an Independent
Committee to investigate. It was unable to rebut the allegations
or confirm ownership of the BVI standing timber. SFC could not
issue further financial statements and advised the public, following
discussions with its external auditors, that prior years’ financial
statements should not be relied upon. The Ontario Securities
Commission (“OSC”) ordered that trading in SFC securities
cease. SFC defaulted on its debt obligations. A number of class
actions were commenced against SFC and its directors, auditors,
underwriters and consultants.
 On March 30, 2012, SFC obtained insolvency protection under
the Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36
(“CCAA”). On December 10, 2012, the Superior Court sanctioned
SFC’s CCAA plan of compromise and reorganization (the
“Plan”). Under the Plan, SFC’s interests in its subsidiaries were
transferred to holding companies owned by SFC’s creditors and
1 All references to currency are in USD, unless otherwise noted.