Legal Updates

A minority oppression claim may be filed by a person who is not registered as a shareholder

November 2, 2017
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Three partners set up a company to provide tourism services to business corporations. The parties executed an agreement whereby half of the company's shares will be held via a corporation held by the two partners, while the third partner will hold the remainder of the shares. One of the partners filed a claim to remove oppression.

The Court accepted the claim and held that when a company is managed as a kind of partnership, each partner is in fact a shareholder in it, even if the company shares are not registered in its name, especially in view of the intention of the parties at the time of the incorporation of the company and their relationship with each other as equal partners. Thus, each partner has the right to demand the removal of its oppression in the company, even if formally such partner is not registered as a shareholder.