In a derivative action brought on behalf of a real estate investment company, the plaintiff alleged that the defendants, who were equal shareholders and officers, misappropriated corporate funds while managing the company's properties.
The court found the defendants breached their fiduciary duties under the Business Corporations Act by misappropriating rent payments, retaining insurance claim proceeds, and taking unequal advances that reduced a shareholder loan.
The court ordered the defendants to pay $87,048.57 in compensatory damages to the corporation.
Claims for punitive damages and a third-party action against the other shareholders were dismissed.
