The applicants, two First Nations, brought a motion seeking an interim order to restrain the four respondent First Nations from distributing funds from their jointly owned corporation, Rainy Lake Tribal Resource Management Inc., to its shareholders.
This motion was brought in connection with an application claiming relief under the oppression remedies of s. 248 of the Ontario Business Corporations Act.
The applicants argued that the notice for the shareholders' meeting, which approved the distribution, was inadequate and that the distribution was unfairly prejudicial.
The court applied the traditional three-stage test for interlocutory injunctions, as affirmed in Le Maitre Ltd v. Segeren and Lakhani v. Gilla Enterprises Inc, finding that the applicants failed to establish irreparable harm.
The court noted that the harm complained of was monetary and adequately secured by funds held in trust by the respondents' solicitors, and that the corporation itself had significant remaining funds.
Consequently, the motion for an interim restraining order was dismissed.