A petition proceeding was brought against our client and others pursuant to the oppression remedy under the B.C. Business Corporations Act. The Petitioner, a sibling of our client’s spouse, alleged that the share compensation and success fee paid to our client was oppressive and unfairly prejudicial to the shareholders. The family business had been struggling financially when our client, Mr. Combs, was brought in to assist with management and to turnaround the fortunes of the business. The court held that the shares were awarded to Mr. Combs to reward him for his work to date and as an inducement to remain active in the management of the companies to put them on a sound footing in preparation for their sale. The court further concluded that the success fee paid to Mr. Combs for the sale of the assets was not oppressive or unfairly prejudicial to the Petitioner. The Petition was dismissed with costs payable to the Respondents.
Tracey Cohen, QC acted as counsel to Mr. Combs.