The appellant corporation issued share certificates as part of a stock roll program, representing them as fully paid when they were not.
A third party pledged one of these certificates to the respondent bank as collateral for a loan.
When the borrower defaulted, the bank sought to realize on the shares, but the appellant refused to acknowledge the bank as the valid owner.
The trial judge found the bank was a good faith purchaser and granted an oppression remedy.
The Court of Appeal dismissed the appeal, holding that the bank was a good faith purchaser, the appellant was estopped from denying the validity of the certificate, and the restriction on transfer did not prevent the transfer to the bank.
The court also dismissed the third-party claim against a credit union for vicarious liability.