This application concerned an oppression remedy under the Ontario Business Corporations Act, brought by a daughter (applicant) against her mother (respondent) and related corporations in a closely held family business.
The applicant alleged oppressive conduct by the respondent, specifically a debt conversion and share issue that diverted corporate revenues to the respondent and terminated the applicant's long-standing income stream.
The court applied the two-step test for oppression, finding that the applicant had a reasonable expectation of continued financial support and participation in the residual value of the corporation.
The court determined that the respondent's actions breached these reasonable expectations and constituted oppressive conduct.
Consequently, the debt conversion and share issue were set aside.
The court declined to remove the respondent as director but directed the parties to negotiate a fair resolution for ongoing payments based on their respective needs and available resources, with the option to return to court if an agreement could not be reached.