The appellants appealed an order under the Business Corporations Act setting the fair market value of shares in a corporation and directing a buyout.
The appellants argued the application judge erred in valuing a specific property at $400,000 without providing adequate reasons for selecting that figure among competing appraisals.
The Divisional Court agreed, finding that meaningful appellate review was impossible due to the lack of explanation.
Furthermore, the application judge committed a palpable and overriding error by inserting the lower property value into a valuation model without adjusting the corresponding tax consequences.
The appeal was allowed and the matter remitted for a new determination of the property's value.
