The appellants appealed a trial judgment that found oppressive conduct in the management of a family holding company and ordered the corporation to purchase the respondents' shares for cancellation.
The trial judge devised a valuation formula that included an unequal distribution of the corporation's capital dividend account to compensate the respondents for their share of the refundable dividend tax on hand.
The Court of Appeal dismissed the main appeal, finding no error in the trial judge's findings of oppression or his general valuation approach.
However, the Court allowed the respondents' cross-appeal in part, correcting a mathematical error in the trial judge's tax account formula to ensure the respondents were fully compensated for their pro rata share of the refundable dividend tax on hand.
