Shareholder oppression occurs when majority shareholders or those in control of a corporation engage in conduct that unfairly prejudices, disregards, or harms the interests of minority shareholders. This goes beyond routine business disagreements—it involves a misuse of corporate power that disproportionately impacts minority stakeholders. The issue is particularly common in closely held private corporations, where shares are not publicly traded, and minority shareholders typically have little ability to sell their interests or exit the business. As a result, they may find themselves trapped in a situation where their rights and investments are vulnerable. Recognizing and addressing shareholder oppression is essential for protecting minority rights and maintaining fairness in corporate governance. One-way shareholders may seek compensation for wrongdoings is through an “oppression” action. Ontario’s oppression remedy is set out in section 241 of the Ontario Business Corporations Act (“OBCA”). In addition to the OBCA, federally incorporated companies are governed by the … Read More
Family Business Litigation | Start Up Company Litigation
We have experience acting for, advising and representing those in closely-held company litigation, both arising from family business disputes and start-up company disputes. Family Business Disputes Many businesses in Canada are family businesses or have evolved from family businesses. Family businesses present many unique challenges as they grow, as key members of the company or partnership leave the family business, or when personal relationships of the key members of the family business thereby change or deteriorate. One of the most common differences between a family business and other established businesses, whether or not a shareholders’ agreement, partnership agreement and other legal documentation was used in the formation of the family business, is the informality in operation of the family business, including the often ignored distinction in fact between employees, shareholders, or partners – since family members often take on multiple roles. Please see our webpage on Family and Closely Held … Read More