The applicants, Calo Holdings Ltd. and Imperial Precast Corp., sought an order equalizing shareholder accounts and other remedies against the respondent, 2347186 Ontario Inc., in the context of a joint venture to operate a precast business through two corporations (2057461 Ontario Inc. and Northern Precast Corp.).
The applicants claimed Imperial was owed over $800,000 for contributions and sought payment from 205 or, alternatively, from 234 based on oppressive conduct.
The court dismissed the application, finding no agreement for overall equalization between the shareholders outside of the specific shareholder agreements for each corporation.
The court also determined that 234 did not owe money to Calo or Imperial, and therefore, 234's refusal to pay did not constitute oppressive conduct under the Business Corporations Act.
Imperial was deemed an unsecured creditor of the respective corporations, not 234.