The applicant, E. Automotive Inc., sought to unwind a transaction under section 248 of the Business Corporations Act, RSO 1990, c B.16, after its shareholding in Autocorp.
AI.
Inc. was diluted below 33 1/3% through the issuance of shares to Blossom Street Ventures.
The court found that E. Automotive Inc. did not have a reasonably held expectation that its shareholding would not be diluted below a certain threshold, nor that shares would not be issued below market value for the purpose of affecting a vote.
The application was dismissed.