Shareholder disputes arise in a variety of contexts, and it is important that shareholders understand their rights and options for dispute resolution prior to litigation. In cases where shareholder disputes cannot be resolved through negotiation, mediation, and/or arbitration, litigation may be the only option.

Shareholders in a corporation have a variety of remedies available under the Ontario Business Corporations Act and the Canada Business Corporations Act. The oppression remedy is perhaps the most powerful remedy and can be invoked when the conduct in question is either unfair or prejudicial to the interests of security holders, creditors, directors, or officers of a corporation. In the event that oppression has been found, the court has wide discretion to order remedies to cure oppressive conduct.

Partnership disputes have the potential to disrupt and interfere with the day-to-day operations and continued growth and success of a venture. In Ontario, the Partnership Act governs partnerships and unless a formal partnership agreement is entered into, the Partnership Act determines the rights and obligations of each partner. In a case where a partnership dispute cannot be resolved through negotiation, mediation and/or arbitration, litigation may be a partner’s only option.