Taheri v Hosseini
Abbasali Shapour Hosseini
Law Firm / Organization
Not Specified
Lawyer(s)

J. Dawson

A. Rehlan

Seylynn (North Shore) MP Ltd.
Law Firm / Organization
Not Specified
Abo Taheri
Law Firm / Organization
Not Specified
In the case of Taheri v Hosseini dated May 11, 2023, Taheri, the petitioner, sought leave under s. 232 of the Business Corporations Act to commence legal proceedings on behalf of respondent Seylynn (North Shore) MP Ltd. The claim was for management fees owed or to become owing to Seylynn by the Partnership, Seylynn (North Shore) Development Limited Partnership. Seylynn, previously the general partner of the Partnership, was entitled to an eight percent management fee of net income. However, in April 2021, the Partnership removed Seylynn as the general partner and created a new general partner corporation. Dr. Hosseini, a director and 50 percent owner of Seylynn, was appointed as a director of the new general partner corporation. Since then, Dr. Hosseini continued to act on behalf of the Partnership while Seylynn ceased operating. Taheri, attempting to claim over $4 million in outstanding management fees owed by the Partnership to Seylynn, believed that Seylynn could enforce the claim due to an arbitration clause in the partnership agreement. He argued that it was in Seylynn's best interest to pursue the management fee claim, and the failure to grant leave to pursue the action would result in a deadlock between himself and Dr. Hosseini, causing Seylynn to lose the claim. The court concluded that the petitioner, Taheri, had satisfied the requirements of s. 233 of the Act, and therefore, he was granted leave to commence a derivative proceeding on behalf of Seylynn to assert its claim for management fees.
Supreme Court of British Columbia
S223980
Corporate & commercial law
Petitioner