The trustees of a public unit trust unilaterally amended the Declaration of Trust to create a unitholder rights plan in response to a hostile takeover bid by the respondent.
The respondent, who owned 20.3% of the units, challenged the amendment.
The application judge declared the rights plan and the amendment null and void, finding they contravened the anti-dilution proviso of the Declaration.
The Court of Appeal dismissed the trustees' appeal, agreeing that the amendment violated the anti-dilution clause and required a 75% unitholder vote.
