The applicant, a 40% shareholder in a holding company (Pazkaz) that owns shares in a start-up (Rave), brought an oppression application under section 248 of the OBCA.
He alleged improper share dilution and mischaracterization of contributions as equity instead of loans, seeking various remedies including a buyout, conversion of equity to loans, removal of directors, or forced sale/winding up.
The court dismissed most of the applicant's claims, finding no unfair prejudice or oppression regarding share dilution or loan characterization, as the companies issued shares commensurate with investments and there was no evidence of misappropriation.
However, the court granted the applicant's request for audited financial statements for both Pazkaz and Rave, affirming a shareholder's statutory right to such information.