The applicant, Don Bernier, brought an oppression application under the Ontario Business Corporations Act, asserting he was a beneficial and equitable shareholder of Skilcor Food Products Inc. and La Riberie Inc. at the time of their 2017 sales, and was denied his shareholder entitlement.
The respondents denied his shareholder status.
The court found that while an oral agreement for a 9% interest in a "Consolidated group" (Skilcor food assets, La Riberie, and Northbud) existed prior to 2010, this agreement was mutually rescinded by the parties' subsequent conduct, specifically the sale and winding-up of Northbud in 2013.
This rendered the original agreement inoperative as Bernier no longer had the equity contribution (Northbud shares) upon which his interest was based.
The court concluded Bernier was not a shareholder of Skilcor or La Riberie at the time of the sales and therefore lacked standing to bring an oppression claim.
The application was dismissed.