2 total
Substantial indemnity costs of $30,000 were awarded due to the respondents' reprehensible corporate conduct.
The court awarded substantial indemnity costs to the successful applicants following a motion for an interlocutory injunction.
The award was based on the respondents' unreasonable, reprehensible, and bad faith conduct, which involved a conspiracy to circumvent a unanimous shareholders' agreement through a sham default and share seizure.
This conduct, including high-handed actions such as changing locks and involving police, justified the higher scale of costs.
Costs were fixed at $30,000, to be shared jointly and severally by the respondent shareholders and secured creditors.
The court granted a mandatory interlocutory injunction reinstating the applicants due to shareholder oppression.
The applicants sought a mandatory interlocutory injunction to reverse actions taken by the respondents and a secured creditor, including the seizure of shares, removal of directors, and termination of employment, alleging an invalid notice of default and oppression.
The court granted the injunction, finding the applicants established a prima facie case that the default notice was invalid, the shareholders' resolutions were null and void, and that the respondents conspired with the secured creditor to circumvent a unanimous shareholder agreement.
The court also found irreparable harm and that the balance of convenience favored maintaining the status quo, reinstating the applicants to their positions and setting aside the impugned acts.
