The parties, equal shareholders in a corporation and former spouses, signed Minutes of Settlement and a consent Judgment to distribute the corporation's assets.
The Judgment did not address the capital gains taxes and other liabilities incurred by transferring properties to the shareholders.
The plaintiffs brought a motion under Rule 59.06(2)(c) to carry the Judgment into operation, arguing the corporation must pay all taxes and creditors before distributing the remaining assets.
The defendant argued he should receive his share without the corporation first paying taxes.
The court held it had jurisdiction to give directions and ordered that the corporation must pay all taxes and creditors before distributing the balance of its assets equally to the shareholders, as required by the Business Corporations Act.
The defendant's motion for contempt was dismissed.
