Pavel Malysheuski

The applicants brought a motion seeking a finding of contempt against former directors of a religious corporation who continued to act as directors and authorized significant payments after a consent court order replaced them.

The court found the respondents knowingly acted contrary to the order by signing cheques and authorizing approximately $135,000 in corporate disbursements after they were no longer directors, including payments after an additional order expressly prohibiting removal of funds.

Applying the established three-part test for civil contempt, the court held the order was clear, the conduct deliberate, and the breach proven beyond a reasonable doubt.

The court declined to order repayment of the funds due to practical enforcement and litigation considerations but imposed penalties and costs.

Members of a religious corporation brought motions relating to governance disputes within the corporation.

The court considered applications to intervene, the validity of a consent order appointing corporate directors following a mediation process before another judge, alleged breaches of that order, and related procedural matters.

The respondents argued that the consent order appointing directors should be set aside on grounds including lack of a condition precedent and alleged illegality under the Corporations Act.

The court rejected those arguments, holding that the consent order was valid and final, having been agreed to by all parties through counsel and approved through the agreed process.

Injunctive relief was granted restraining certain respondents from interfering with the corporation’s governance and requiring the turnover of corporate property and documents.