Employment of a minority shareholder was unilaterally terminated, his mobile phone disconnected, access to company servers blocked and company financial information refused. The controlling shareholder contended that the minority shareholder competed with the company.
The Court accepted the claim and held that in a “closely-held company” there is a legitimate expectation of shareholders to jointly manage the company and loss of trust between the partners is sufficient ground for separation, even if the plaintiff fails to prove oppression. The trust crisis created is irreparable, the parties do not cooperate, the minority shareholder ceased working at the company and receives no salary, so there is no point in forcing the parties to continue working together. Thus, the majority shareholder will purchase the minority shareholder’s shares pursuant to a valuation to be made by an objective assessor appointed by the Court.