Experienced Oppression Remedy Lawyers in Toronto
Some stakeholders in a business do not have a large degree of influence within the corporate structure. When wrongful conduct interferes with their personal interests, legal action may be the only remedy.
Financial Litigation is a commercial litigation boutique that handles time-sensitive legal disputes on behalf of shareholders, creditors, and other individual stakeholders that have suffered losses as the result of improper conduct by corporate agents. We are ready to step in with insightful advice at any stage, whether you have questions about a potential problem, or are already facing a legal dispute. We can also defend these claims.
What is the purpose of the oppression remedy?
Both the Ontario Business Corporations Act and the Canada Business Corporations Act have mechanisms in place to protect shareholders and other corporate stakeholders from the wrongful conduct of majority shareholders, the company board of directors, and other agents of the corporation.
Both acts contain language that permit the court to grant a personal remedy where it can be proven that a corporation or its affiliate(s), whether through its business affairs, acts or omissions, operations, or powers of its directors, have acted in a manner that is oppressive or unfairly prejudicial to the interests of any individual security holder, creditor, director or officer.
Where may an oppression remedy be available?
There is no bright line test to determine whether an oppression remedy may be warranted. Claims of oppression are assessed on a case-by-case basis, but to succeed they must include evidence of damage to the individual that goes beyond any losses suffered by the corporation or shareholders as a whole.
Some examples where an oppression remedy may be available include:
- A director has been taking excessive compensation;
- Directors or officers are placing their personal interests ahead of corporate interests;
- Majority shareholders have made decisions that directly injure the interests of minority shareholders; or
- Agents of the corporation are acting to the detriment of company creditors or investors.
Oppression claims are made on behalf of individuals seeking remedies. Similar situations may also give rise to derivative actions, which are claims made on behalf of a corporation for wrongs done to the corporation itself.
Skilled, responsive legal advice for oppression claims
Pursuing an oppression remedy is complicated, and should only be handled by an experienced commercial lawyer. Financial Litigation is a litigation boutique that exclusively handles disputes relating to corporate and financial matters. Eli Karp and his team represent individuals harmed by oppressive activities, and regularly advise on oppression claims. Given our extensive experience in bringing these claims we understand what is required to defend these claims and can represent Plaintiffs or Defendants. Contact us online to schedule a consultation, or by calling at 416-769-4107 x 1.