Max Munoz

The applicant sought a final order approving a proposed plan of arrangement under section 192 of the Canada Business Corporations Act to facilitate a going private transaction.

The arrangement was overwhelmingly approved by the shareholders at a special meeting.

The court found that all statutory and court-ordered requirements were met, the arrangement was put forward in good faith, and it was fair and reasonable.

The final approval order was granted.

The special committee of FAX Capital Corp. brought a motion for an interim order under section 192 of the Canada Business Corporations Act to approve the procedure for calling and holding a special meeting of shareholders.

The meeting was to consider a proposed plan of arrangement intended to take the company private.

The court found that the applicant was acting in good faith and met the statutory requirements.

The interim order was granted, establishing the mechanics for notice, voting, and dissent rights.

The plaintiffs brought a motion for a preservation order regarding shares in a start-up company, alleging they owned two-thirds of the shares held by the defendant.

The defendant claimed sole ownership and had recently sold a portion of the shares.

The court found the plaintiffs met the test for a preservation order under Rule 45.

However, to mitigate prejudice from fluctuating share prices, the court ordered that the defendant could sell the shares but must pay the proceeds into court.

The plaintiffs, two numbered companies acting as financing vehicles for tax shelter schemes, sued the defendant investor for repayment of $6.29 million in loans.

The defendant argued that the loans were satisfied by preferred shares held in trust and that claims for earlier loans were statute-barred.

The court found that the claims for the earlier loans were out of time as the limitation period commenced when the loans matured or were demanded by the tax shelter's operating company acting as the plaintiffs' agent.

Furthermore, the court held that the preferred shares were intended to repay the loans.

The action and the defendant's counterclaim were dismissed.