The appellants appealed an urgent Commercial Court order that set a date for a requisitioned shareholder meeting, appointed an independent chair, and restrained directors opposing the requisition from voting shares issued to them after the requisition date.
The appellants argued the application judge failed to make an explicit finding of impropriety regarding the share issuance and failed to apply the business judgment rule.
The Divisional Court dismissed the appeal, finding the application judge's reasons were sufficient when read in context, as they clearly demonstrated concern that the shares were issued to dilute the requisitioning shareholders' voting power.
The court also held the application judge properly declined to apply the business judgment rule, as the directors' actions were not in the best interests of the company.