The appellant, a director of a public holding company, appealed orders removing him from the board of directors and denying him indemnification for costs incurred in resisting his removal.
The application judge had previously found the appellant engaged in oppressive conduct regarding a related-party loan but temporarily allowed him to remain on the board at the pleasure of the independent directors.
When the corporation's circumstances changed, including the commencement of litigation against the majority shareholder, the application judge ordered the appellant's permanent removal.
The Court of Appeal dismissed the appeal, holding that the application judge had jurisdiction under s. 241 of the Canada Business Corporations Act to order the conditional service and subsequent removal of the director.
The Court also upheld the denial of indemnification, finding the appellant did not act in the best interests of the corporation in resisting his removal.