The defendant moved to stay the plaintiff's construction lien actions and discharge the liens, arguing that the plaintiff corporation lacked a controlling mind after its sole director became bankrupt.
The court found that neither the bankrupt director nor a secured creditor holding a share pledge agreement had the legal authority under the Business Corporations Act to direct the litigation.
The court stayed the actions but granted a 30-day cure period for the plaintiff to rectify the corporate governance issue, and ordered the plaintiff to post $150,000 in security for costs as a precondition to lifting the stay.