The appellants (majority directors) appealed a costs order of $213,380.64 made against them personally following an application by the respondents (minority directors).
The Court of Appeal upheld the quantum of costs but found the application judge erred in ordering costs against the directors personally without a finding of mala fides.
The court noted the corporation's constitution provided for indemnification of directors acting in the execution of their duties.
The appeal was allowed in part, varying the order to make the corporation responsible for the costs.
