The appellant sought leave under section 246 of the Business Corporations Act to commence a derivative action and file pleadings on behalf of a corporation in an ongoing shareholder dispute.
The application judge refused leave, finding that the proposed action would not benefit the corporation and that the appellant was not acting in good faith due to a conflict of interest.
On appeal, the Divisional Court applied the Housen standard of review and found no palpable and overriding error in the application judge's factual findings.
The appeal was dismissed with costs awarded to the respondents.
