Commercial landlord on the hook for tenant shareholder’s loss in share value: Ontario Appellate Court clarifies limits on traditional rule that shareholders cannot sue for wrongs to the corporation
Shareholders of a corporation do not have a personal cause of action for wrongs committed against the corporation – such is the well-known rule in Foss v Harbottle. However, in Tran v. Bloorston Farms Ltd., the Court of Appeal recently clarified exceptions to that rule, one of which includes situations where a shareholder has her own personal cause of action and the corporation is not able to sue. In such circumstances the shareholder’s claim will not be barred by the rule. Background Sang Thi Tran (“Sang”) was a tenant under a lease assigned to her by her sister in 2010. ... [more] Full article
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