The applicants, minority shareholders, commenced an oppression application against the respondents, the majority shareholders and the corporation.
The parties consented to a trial to determine the value of the applicants' shares, which the respondents would purchase.
The court resolved several methodological disputes between the parties' expert valuators regarding maintainable earnings, capitalization rates, and redundant assets.
Crucially, the court held that no minority discount should be applied to the valuation of the applicants' shares, as the purchase was a compulsory consolidation of the majority's position rather than an open market transaction.
