Shareholders commenced action against corporations in negligence for failing to prevent or detect fraud. Corporations moved to strike portions as amended statement of claim. In response, shareholders moved under s. 246 of Ontario Business Corporations Act (Act) for leave to commence derivative action. Motion judge found shareholders’ motion was statute-barred by virtue of s. 4 of Limitations Act, 2002. Shareholders appealed to Ontario Court of Appeal. Appeal transferred to Divisional Court. Order under appeal was order within meaning of s. 255 of Act, and appeal lay to Divisional Court.
1186708 Ontario Inc. v. Gerstein (2016), 2016 CarswellOnt 18627, 2016 ONCA 905, E.E. Gillese J.A., M.L. Benotto J.A., and L.B. Roberts J.A. (Ont. C.A.).