The applicant, a minority shareholder in a family-owned lumber company, brought an application for an oppression remedy under s. 248 of the Business Corporations Act, seeking an order to force the respondents to buy out her shares or liquidate the company.
She alleged that the company's refusal to pay dividends despite being profitable, and its refusal to buy her shares, constituted oppressive conduct.
The respondents argued the claim was statute-barred and that the retention of capital was necessary due to the cyclical nature of the softwood lumber industry and the expiration of the Canada-US softwood lumber agreement.
The court found that while the claim regarding recent non-payment of dividends was not statute-barred, the applicant did not have a reasonable expectation of receiving dividends given the industry's challenges.
The court concluded that the company's conservative management style and decision to retain a high working capital were valid business decisions and did not constitute oppression.
The application was dismissed.
