Challenging an executor’s administration of an estate that includes running a provincially incorporated business presents litigants with an added layer of complexity. When a business owner dies, its appointed executor often holds the additional role of the operating corporation’s officer or director. Where that executor has mismanaged the company or unduly delayed its sale, interested parties ought to consider not just the standard remedies under the Trustee Act, but Ontario’s Business Corporations Act. This includes possible oppression remedies or derivative actions, alongside the Trustee Act, to seek the executor’s removal as estate trustee and director & officer of the company. Lawyers should be aware of the distinct but related tests for seeking this relief.

Topics

• Executor is Appointed Officer/Director of Deceased’s business, but is mismanaging the business.
• The Executor as Director of the business is delaying the transfer or sale of the business, while at the same time being compensated for running the business.