William Dunlop

The plaintiffs brought a motion to enforce a settlement agreement, alleging the defendants failed to satisfactorily complete earth works and grading on their property as required by the minutes of settlement.

The parties relied on conflicting unsworn engineering reports regarding the adequacy of a buffer zone, berms, and general conformance with the grading plan.

The court found it could not resolve the factual disputes on the written record alone.

The court withheld its final order for 45 days to allow the parties to make submissions on holding a mini-trial or ordering the experts to meet and confer under the Rules of Civil Procedure.

The defendant/plaintiff by counterclaim brought a motion seeking declarations regarding her status as a shareholder and director of the plaintiff corporation following her termination without cause and the subsequent exercise of an option to purchase her shares.

The plaintiff brought a cross-motion seeking declarations that she had ceased to hold those positions.

The court interpreted the Unanimous Shareholder Agreement and found that the moving party and her family trust remain shareholders, and she remains a director, until the closing of the share transfer.

The court granted the requested declarations and ordered the plaintiff to provide access to corporate records.

Shareholders and a director of two corporations brought an application seeking interim access to corporate books and records, including accounting records and source documents.

The respondents argued that the applicants already had sufficient financial information through electronic systems and financial statements.

The court held that under ss. 20 and 155 of the Canada Business Corporations Act and the applicable unanimous shareholders agreement, shareholders and directors have a broad and largely unconditional right to inspect corporate accounting records.

The term “adequate accounting records” includes source documents and records used to prepare financial statements, not merely the statements themselves.

The court granted the applicants immediate and unfettered access to specified corporate records but dismissed a related request for a restraining order as premature.