The applicants challenged the respondent Humane Society's Board of Directors' decision to move to a closed membership model and their refusal to recognize over 100 new members who joined via an online portal.
The court found that the Board acted in bad faith by arbitrarily refusing to approve the new memberships to prevent them from voting against the new by-law.
Furthermore, the court interpreted the Not-for-Profit Corporations Act, 2010, concluding that the by-law amendments affecting membership transfers, notice, and proxy voting required a two-thirds special majority, not a simple majority.
The by-law was declared void and a new members' meeting was ordered.