Stevenson Whelton partner Richard Macklin, and articling student Adam Varro, acted for a client who successfully obtained an order allowing him to buy out his estranged wife and daughter and have their employment, officer positions and directorships terminated.
Each side alleged oppressive conduct against the other, and the business was in a deadlock position. Each side sought a buy-out order, on oppression grounds, under the Ontario Business Corporations Act (the Act). Our client also sought a buy-out order under section 207 of the Act.
The Court declined to weigh in on the oppression allegations but did grant the order our client sought under s. 207 of the Act. The order was granted based on our client having been the more important contributor to the business.
Thus, the case is an important authority in regard to an applicant’s right to obtain a buy-out order, in a case of corporate deadlock, in the absence of establishing oppression, based solely on their having made a more significant contribution to the business.
Read the case here.