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Two sides of same coin: Derivative action and oppression remedy

One of the most fundamental principles of Canadian corporate law is that a corporation has a legal personality distinct from its shareholders. At common law, shareholders were precluded from bringing their own action in respect of a wrong done to the corporation. Even majority or controlling shareholders had no personal cause of action for a wrong done to the corporation.
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Freeze Assets

Going nuclear: Freezing assets with a Mareva injunction

Courts are generally loath to permit “execution before judgment”. The simple reason is that a plaintiff has not yet proven their case against the defendant. Tying up a defendant’s assets pending a trial that may be a couple years away may cause an inequitable result if the defendant is ultimately successful in showing that a plaintiff’s claim is unmeritorious. The freezing order could also make the defendant unable to defend itself or result in a “forced” settlement on terms that the defendant would not have otherwise agreed to.
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