The applicant, a unitholder in an income fund, sought an order requiring the fund's trustees to call a special meeting of unitholders to vote on a proposed transaction involving the restructuring of preference shares and secured notes.
The court found that the proposed transaction was objectively 'materially adverse' to the unitholders because it postponed payments on the secured notes.
Consequently, under the Declaration of Trust, the trustees lacked the authority to vote the fund's common shares in favour of the transaction without unitholder approval.
The court ordered the special meeting of the company to be adjourned pending a unitholder vote.