CORPORATIONS - Liquidation and dissolution

Law360 Canada ( September 19, 2022, 9:22 AM EDT) -- Appeal by Hawley from a decision of a chambers judge refusing to convert Petersen’s petition for liquidation and disposition of the parties’ company under s. 324 of the British Columbia Business Corporations Act into a civil claim. The parties were brothers and equal shareholders of Value Equity. While the brothers successfully operated the company for several years, they were now at a deadlock on almost every decision that needed to be taken to carry on that business. The chambers judge found the disagreements paralyzed and seriously interfered with the normal operations of the company. In the judge’s opinion, no party was responsible for this state of affairs. Although the parties disagreed as to who was the cause of the conflict, the judge did not find that Petersen’s conduct was so clearly the cause that the order he sought should be denied. The judge did not find it necessary to order a trial as he did not find there was a need to resolve who was correct in this case. It was sufficient to be able to conclude there was a deadlock and that it was just and equitable to order the liquidation and dissolution of the company....
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