RE:RE:As Long as the "Formal Valuation" is a minimum $18.50...Assuming a "Formal Evaluation" of $18.50, then the company cannot disallow the Minority Shareholders to vote on it. The lawyers for all parties will have a field day with this puppy...
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.