The parties, equal shareholders in a successful machining business, reached a deadlock that paralyzed the companies' operations for eight months.
Bank accounts were frozen, creditors were unpaid, and the business ceased functioning.
The respondent brought a motion to appoint a receiver-manager.
The applicant agreed a receiver was necessary but sought a delay to negotiate a buyout.
The court found that further delay would be futile and disastrous for the companies, and ordered the immediate appointment of a receiver-manager under s. 101 of the Courts of Justice Act and s. 248 of the Business Corporations Act.
