The respondent brought an oppression application alleging that the appellants engaged in self-dealing by causing a corporation to fund outside companies owned by them.
The appellants moved to stay the application in favour of arbitration, relying on an arbitration clause in a shareholders' agreement.
The motion judge dismissed the stay motion, finding the oppression claim did not rely on the shareholders' agreement and the alleged conduct related to the appellants' capacities as officers and directors, not shareholders.
The Court of Appeal dismissed the appeal, agreeing that the dispute fell outside the scope of the arbitration clause.
