Tianya Shao, a director and secretary of the Plaintiff, Prime Global Solutions Inc., brought a motion under sections 246(1) and 247 of the Business Corporations Act (Ontario) seeking leave to bring a derivative action on behalf of the Plaintiff and to be appointed to control its conduct.
The Defendant, Lambton Conveyor Limited, did not oppose the motion.
Three other directors of the Plaintiff (Daniel Sturgeon, John Christopher Moorhouse, and Richard Depooter) refused to consent to the relief sought, necessitating the motion, but did not appear to oppose it.
The court granted leave for the derivative action, appointed Mr. Shao to control its conduct, and awarded substantial indemnity costs of $6423.02 against the three non-consenting directors, payable jointly and severally.
The court also addressed potential procedural defects by invoking Rules 1.04(1), 1.04(1.1), 2.01, and 2.03 of the Rules of Civil Procedure.