The applicant sought a declaration that a foreign state held an equitable or other interest in shares of a Canadian mining company registered in the name of a state-owned corporation, and an order permitting seizure of those shares to satisfy an unpaid international arbitral award.
The court examined the structure of the state-owned corporation, the governing agreements surrounding the share issuance, and applicable foreign and domestic law.
It concluded that the foreign state provided the consideration for the shares, exercised effective control over them, and was intended by the parties to have a beneficial interest.
Under s. 18 of the Execution Act, that equitable interest constituted property capable of seizure.
The court therefore authorized seizure of the shares and related dividends to enforce the arbitral award.
