Members of a Sikh temple incorporated under the Ontario Corporations Act brought an action challenging the admission of 23 new members and the election of directors following a disputed board meeting and special members’ meeting.
The court found that the board meeting at which the new members were admitted had been convened using misleading notice and that opposing directors had been led to believe the meeting would not occur due to mediation efforts.
The admission of the new members was therefore conducted in bad faith and declared null and void.
Because those members participated in a subsequent members’ meeting, quorum was lacking and the election of directors and subsequent board appointments were also invalid.
The court issued extensive declaratory relief restoring the prior membership and board composition and ordered governance reforms, including a monitor, audits, training, and conditions before a court‑ordered members’ meeting could be held.