The applicant sought leave to commence a derivative action on behalf of the company against the respondent, who allegedly took corporate funds for personal use without authorization.
The parties were the sole directors and equal voting shareholders, resulting in corporate gridlock.
The court found the applicant met the requirements under section 239 of the Canadian Business Corporations Act, including providing proper notice, acting in good faith, and showing the action was in the company's interest.
Leave was granted, and the company was ordered to pay the applicant's reasonable legal fees, with the ultimate amount to be determined at trial.
