Fraud and embezzlement are among the most serious breaches of trust that can occur within a corporation. When corporate insiders, such as directors, officers, or controlling shareholders, engage in misconduct that harms the corporation itself, traditional remedies available to shareholders may not be sufficient. In such cases, derivative litigation can serve as a powerful legal […]
Category Archives: Derivative Claims
Shareholder Disputes Expected to Rise in Canada’s Cannabis Industry
When cannabis was legalized in Canada in 2018, many people, including financial investors, assumed the industry would be a nearly foolproof opportunity. However, due to a sudden rise in class-action lawsuits in Canada and the U.S., many shareholders are facing an unexpected devaluation of stock. Some people believe this could lead to an increase in […]
Oppression Remedy or Derivative Action?
The Ontario Business Corporations Act (OBCA) and The Canada Business Corporations Act (CBCA) are both remedial statutes. They serve to regulate corporate behaviour but also to remedy some restrictive common law rules that applied to corporations. Two such remedies are the Oppression Remedy and, with leave of the court, The Derivative Action. To understand these […]