Former directors, officers, and consultants of Look Communications Inc. sought interim advancement of their legal fees to defend against an action brought by Look alleging breach of fiduciary duty regarding bonus and equity cancellation payments.
The court held that s. 124(4) of the CBCA applies to actions brought directly by the corporation, requiring court approval for advancement.
The court found Look established a strong prima facie case of mala fides against the directors and officers, rebutting the presumption of good faith.
Advancement was denied for all applicants except one employee, Dolgonos, whose entitlement arose under an indemnity agreement not subject to s. 124(4).
