Leean International Corp. v. CF Energy Corp.
The court granted derivative leave because the applicant proved it acted in good faith and the claim was in CF Energy's best interests: the underlying contractual claim was viable and substantial; the respondent's evidence of a board decision to litigate in China was too vague to attract full business-judgment deference, and there is a reasonable prospect an Ontario court would extend time to permit service of the 2022 Statement of Claim; accordingly leave under s.232(2) BCA was appropriate while security for costs was deferred and left open for later application.
Source excerpt
- Derivative action
- Leave to proceed
- Good faith
- Best interests of company
- Business judgment rule
- Forum selection clause