When a business enters into a contract with another company, it must carry the risk that it will not be able to recoup its losses from the company in the event of its breach. This risk may be magnified when the company is small and closely held. Much of this risk originates in a legal […]
Category Archives: Oppression Claims
Oppression Remedies Should Not Be Based Solely On Agreements Between Stakeholders
A recent Ontario Court of Appeal decision considered the role that agreements signed between corporate stakeholders play in an individual’s claim for an oppression remedy under the federal Canada Business Corporations Act. The case is a useful reminder of the need for a holistic, contextual approach to the issue of oppression rather than one limited […]
Award for $182,000 Relating to “Loss of Business Value” Set Aside by Divisional Court
A recent decision from the Divisional Court of Ontario Superior Court of Justice set aside a trial judge’s order awarding $182,000 in damages for “loss of business value.” The defendants appealed the matter to the Divisional Court, where it was determined that the trial judge’s decision was grounded in facts and law. However, the Court […]
Shareholders’ Agreement Helps Founder Obtain Oppression Remedy
The oppression remedy protects individuals with an interest in a corporation from corporate actions that are harmful by protecting their reasonable expectations. If a claimant can show unfair conduct by a corporation resulting in prejudice to their interests, the oppression remedy enables a court to intervene. Because the key to the remedy is a focus […]
Corporate Directors & Personal Liability for Unpaid Wages
A recent decision of the Ontario Court of Appeal in Abbasbayli v. Fiera Foods Company provides insight into the statutory claims that may be brought against corporate directors for unpaid wages and vacation pay in the context of wrongful dismissal. Terminated Employee Makes Claim for Unpaid Wages Against Corporation and Directors Personally The Plaintiff, Mr. […]
The Condominium Act & The Oppression Remedy
We have previously written about the remedy of oppression, and how it applies to the actions taken by a corporation that cause harm to individual shareholders, officers, directors, creditors or debtors. The remedy applied will depend on the type of oppressive conduct, but can include restraint fo the conduct, removal of officers or directors, and […]
The Discoverability of Oppression Claims
The Ontario Court of Appeal (ONCA) in Maurice v. Alles (2016) found section 4 of the Limitations Act to apply to oppression claims under the Ontario Business Corporations Act (OBCA). Accordingly, claimants must bring their oppression claims within two years of the alleged oppressive conduct, subject to discoverability. In the case of multiple oppressive acts […]
Oppression Claims & The Business Judgment Rule
Oppression is defined under the Ontario Business Corporations Act as conduct that is “oppressive or unfairly prejudicial to or that unfairly disregards the interests of any security holder, creditor, director or officer of the corporation”. This conduct does not need to be illegal so long as it fits the definition set out in the legislation. […]
Oppression and the Right to Financial Information
Recently we wrote to provide an overview of the Oppression Remedy. There, we learned that the leading case dealing with the interpretation of the oppression remedy was the Supreme Court of Canada’s (SCC) decision in BCE Inc v Debentureholders. The Divisional Court of Ontario has recently released its decision in APAC Limited v. Cronin which dealt […]
The Oppression Remedy: An Overview
When corporate actions or decisions negatively impact those with interests in the corporation (including directors, officer, shareholders, creditors, and debtors) the affected parties may have grounds to request an oppression remedy. The oppression remedy focuses on the harm done to the legal and equitable interests of a wide range of stakeholders affected by alleged oppressive […]