The moving defendant sought a stay of the action against one corporate plaintiff on the basis that the corporation had failed to comply with statutory filing obligations.
Evidence established that the corporation had not filed its initial return, annual returns, or several income tax returns as required under the Corporations Information Act.
Under s. 18(1) of that Act, a corporation in default of required filings lacks the capacity to maintain a proceeding in an Ontario court without leave.
The court found the corporation had provided no explanation for its defaults and had not sought leave to continue the action.
The action was therefore stayed as against that plaintiff under s. 106 of the Courts of Justice Act until further order.
