CSL obtained leave from the BC Supreme Court for its client to pursue a derivative action under s. 233 of the Business Corporations Act. The underlying allegations were that a director and shareholder had misappropriated corporate funds. The BCSC concluded there was a reasonable and good faith basis for the proposed action and authorized CSL’s client to have conduct of that application.
The director appealed the decision.
The Court of Appeal upheld the BCSC’s decision. The Court declined to interfere with the chambers judge's findings on good faith and best interests of the company. The Court acknowledged that a deferential standard of review applied and that there was no basis to overturn the judge’s findings of fact. A copy of the decision can be accessed here.
