RE:RE:Plenty of questions.........Minority shareholders do have rights. "Pursuant to the Canada Business Corporations Act ("CBCA") and the Ontario Business Corporations Act ("OBCA") minority shareholders have certain rights that protect them from the actions and decisions of majority shareholders within the corporation. This means that if you control a majority of shares in a corporation you will be required to consider the interests of not only the corporation, but the interests of minority shareholders before making certain fundamental corporate decisions."
I suspect that the differential share prices (19.74 vs 16.00) was an attempt to placate minority shareholders and provide evidence that they have been treated fairly.
Below is some information on how the deal can be challenged.
This info is simply from google search, so if anyone has experienced this before, please share. Oppression Remedy
The oppression remedy is available under the CBCA and the OBCA and it is one of the most powerful tools that minority shareholders have to protect their rights. The remedy allows a shareholder to commence a claim against the corporation in cases where the actions or omissions of the corporation or its management are oppressive, unfairly prejudicial or unfairly disregard the interests of the shareholder.
The oppression remedy, which is broad in scope, has gained traction in the past decade. Corporations therefore need to consider carefully the impact of its decisions and activities with respect to the rights of minority shareholders.
When faced with an oppression remedy claim the court has wide discretion in choosing appropriate remedies, some of which include:
- An order restraining the conduct complained of;
- An order directing the corporation to purchase the shares of a shareholder;
- An order compensating an aggrieved person;
- An order liquidating and dissolving the corporation
These orders can have a significant impact on a corporation and are an incentive for corporate owners and directors to act appropriately when making decisions which materially affect the corporation and its shareholders.
dv
HeyDGP wrote: Fritzy1 - I could not agree more! However, the majority of the vote lies with Brookfield and we minority shareholders will have No say. Our only hope is another offer - Brookfield simply wants their cash and out of this "investment" with a very nice return. We all know that a gain is only realized when an investment is sold. Unfortunate for us, we wanted more of a return given all the positives surrounding this entity. GLTA.