The appellants appealed an order directing the liquidation of Tarn Financial Corporation under the oppression provisions of the Business Corporations Act.
The application judge found that the appellant had engaged in self-dealing and diverted corporate funds for personal benefit, and ordered liquidation as the only viable remedy to separate the parties.
On appeal, the appellants argued the judge should have ordered a forced buyout instead.
The Divisional Court dismissed the appeal, holding that the application judge made no palpable and overriding error and properly exercised his discretion, as a forced buyout would leave the appellant in control of the valuation process and fail to ensure fair market value.
