Internal Business Disputes in Trades, Subtrades, Contractors and Subcontractors

David Alderson, LL.B, LL.M (Commercial and Corporate), Lawyer, Qualified Arbitrator and MediatorAppointing Auditor, Appointing Inspector, Business Disputes, Business Torts | Economic Torts, Closely-Held Business Disputes, Commercial, Corporate Disputes, Corporate Litigation, Derivative Actions, Directors' and Officers' Liability, Oppression Remedies, Partnership Dispute, Partnerships and Shareholder Disputes0 Comments

Internal Business Disputes in Trades, Subtrades, Contractors and Subcontractors
Our Business Dispute Practice Group can represent shareholders in dispute with other shareholders and/or directors in Closely Held Businesses, Family Businesses, and Startup Businesses. Often a dispute arises because a shareholder cannot obtain access to financial information, financial statements, financial documents and records of the corporation, voting rights, rights with respect to meetings or fraud. In some circumstances, an application can be made by a shareholder for access to financial information, financial statements and records of the corporation.  Shareholders remedies include oppression remedy actions and derivative actions, and the appointment of an auditor or an an inspector. 
One of our senior business litigation lawyers was a faculty member of the Osgoode PD professional development program concerning Shareholder Litigation and the Closely-Held Company
Oppression Remedy

The oppression remedy is a mechanism in the Ontario Business Corporations Act and the Canada Business Corporations Act to protect the interests of shareholders and stakeholders in a corporation against wrongful conduct.  Whether the Ontario or Canada Act will apply depends on the jurisdiction in which the corporation was incorporated.

The oppression remedy can be used to protect the interests of shareholders, directors, officers or creditors against the acts of other shareholders, the board of directors or other affiliates of the corporation.

The oppression remedy can be used to protect the interests of shareholders, directors, officers or creditors against the acts of other shareholders, the board of directors or other affiliates of the corporation. When any act or omission of the corporation or any of its affiliates effects or threatens to effect a result; the business or affairs of the corporation or any of its affiliates are, have been or are threatened to be carried on or conducted in a manner; or the powers of the directors of the corporation or any of its affiliates are, have been or are threatened to be exercised in a manner that is oppressive or unfairly prejudicial to or that unfairly disregards the interests of any security holder, creditor, director or officer of the corporation, the court may make an order to rectify the matters complained of.

See our webpage on Oppression Remedy for minority shareholders.

Directors and Officers Liability

Directors and officers of companies are expected to exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.

This duty of care is codified in the Ontario Business Corporations Act which applies to corporations incorporated in Ontario, and the Canada Business Corporation Act for Federally incorporated corporations. The Courts have developed the “business judgment rule”, which provides that a director or officer will generally not be liable where the process used by the director or officer in reaching a decision was either rational or employed in a good faith effort to advance corporate interests.

Directors have fiduciary duties and duties of loyalty which forbids self-dealing, appropriating opportunities that belong to the company, or privately or personally benefit from decisions made at the expense of shareholders, or a group shareholder. Directors are forbidden from diluting the value of shares.

Business Dispute Blog Archive

Please see our extensive archive of business dispute blog posts.

See our webpage on Directors and Officers Liability and Fiduciary Duties.

Business Dispute Practice Group

Please contact our Intake Coordinators to arrange an initial consultation with a lawyer in our Business Dispute Practice Group.

By phone: 416 979 2020, extension 223 | By email: info@gilbertsondavis.com | By Online Consultation Request


Brief informational summaries about insurance litigation, commercial litigation and family law litigation matters in the courts of Ontario and Canada are periodically published on our website. Please note that our website content is for informational purposes only, and should not be construed or relied upon to provide legal advice. If you require legal advice, please request an initial consultation with Gilbertson Davis LLP using the Request Consultation Form on this webpage or by contacting our Intake Coordinator on (416) 979-2020, ext. 223 (both subject to the Terms of Use described on our Contact page).
Comments & Opinions by Gilbertson Davis LLP lawyers and staff on its Blog, or in media interviews, appearances or publications, or in professional publications, are personal to them, and do not necessarily represent the opinions of the Firm or anyone at the Firm other than the individual expressing those comments or opinions.

About the Author

David Alderson, LL.B, LL.M (Commercial and Corporate), Lawyer, Qualified Arbitrator and Mediator

David Alderson, LL.B, LL.M (Commercial and Corporate), Lawyer, Qualified Arbitrator and Mediator, has practiced over 40 years as a commercial and business litigator in diverse matters in the courts and in domestic and international arbitration proceedings in Ontario, England & Wales, Bermuda and Dubai. David is also admitted in New York. He is a qualified, experienced and independent arbitrator. The ADR Institute of Canada has accredited David as a Qualified Arbitrator. He accepts appointment as a sole arbitrator and as a panel member in a panel arbitration concerning business, commercial, commercial leasing, commercial rent renewal disputes, condo, contract, construction, distribution, employment, events cancellation, franchise, joint venture, marine, oppression remedy, partnership, procurement, real estate, reinsurance, sale of good, sale of business, technology and transportation disputes. David also offers practice management arbitration of procedural disputes in the courts. He is an experienced commercial mediator. Bio | Lawyer | Arbitrator | Mediator | Contact

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