Question from Sugarman, What are the financial remedies in a shareholder oppression case in Canada?
Answer from AI:
In Canada, the law provides remedies for shareholders who experience oppression, unfair prejudice, or unfair disregard of their interests by the corporation’s directors or other controlling shareholders. These remedies are outlined in the Canada Business Corporations Act (CBCA) and similar provincial statutes.
Under Section 241 of the CBCA, a complainant may apply to a court for an order to rectify the matters complained of if the directors or other persons in control of the corporation have acted oppressively or unfairly. The court has broad discretion to make any interim or final order it thinks fit to rectify the situation.
The financial remedies available in a shareholder oppression case can include:
- Compensation: The court may order the corporation or any other person to compensate an aggrieved shareholder for any loss or damage resulted from the oppressive conduct.
- Buy-out: The court may order the purchase of the shares of the aggrieved shareholder at a fair value. This is often the remedy of choice when the relationship between the shareholders has broken down irretrievably.
- Winding up: In extreme cases, the court may order the winding up and liquidation of the corporation.
The determination of whether a shareholder has been oppressed and the appropriate remedy is highly fact-specific and depends on the circumstances of each case. Therefore, it is crucial to consult with a legal professional who can provide personalized advice based on the specific facts of your situation.
Remember, while these resources can provide general guidance, they cannot replace the advice of a legal professional. If you believe you are a victim of shareholder oppression, it is strongly recommended that you seek legal advice.