Has the Corporate Veil Been Lifted on Interim Costs Awards in Oppression Remedies?

By Ashley Kandestin  ZSA RecrutmentJuridique Last month, the Court ofAppeal unanimously overturned the granting of an interim costs award againstthe directors of a company in the context of an oppression remedy, in Trackcom SystemsInternational Inc. c. Trackcom Systems Inc.,2014 QCCA 1136.In the judgment, the Honorable Justice Clément Gascon analyzes the legislativepowers of the court under section 242 (4) of the Canada Business Corporations Act (CBCA), as well as the powersrecognized by the courts, most notably in the Supreme Court’s Okanagan ruling. These are the two wayson which to base a costs order in the context of an oppression remedy. At paragraph81 of the judgment, Justice Gascon held that under section 242 (4) of the CBCA,it is not possible to order the payment of interim costs against shareholdersor individual directors of a corporation:   “Thewording of that subsection is clear. Parliament has enacted a provision forinterim costs that includes legal fees and… Lire la suite