The appellants, minority shareholders of a Manitoba broadcasting corporation, brought an action in Ontario seeking an oppression remedy under the Canada Business Corporations Act against the majority shareholder and its affiliates.
The motions judge stayed the action, finding Ontario lacked jurisdiction and that Manitoba was the convenient forum.
On appeal, the Court of Appeal held that the motions judge erred in applying the real and substantial connection test to defendants present in Ontario, and found that Ontario did have jurisdiction over all defendants, including the extra-provincial defendant.
However, the Court upheld the stay on the basis that Manitoba was clearly the more convenient forum, as the dispute primarily concerned the internal management of a Manitoba corporation.