Applicant
Respondent
Background: Chief James Marlowe, representing the Lutsel K’e Dene First Nation, sought to address oppressive conduct by Mirza Mohammad Imran Karim Barlas, CEO of several LKDFN companies (Tsa Corporation, Ta’egera Company Ltd., and Denesoline Corporation Ltd.). Mr. Barlas was accused of self-dealing and fraudulent activities, causing financial losses.
Legal Issues: The applicants sought leave to commence derivative actions under the Canada Not-for-profit Corporations Act and the Business Corporations Act, alleging oppressive conduct, fraud, and self-dealing by Mr. Barlas.
Derivative Actions: The court was asked to grant permission for actions on behalf of the LKDFN companies against Reynolds Mirth Richards and Farmer LLP (RMRF) and KPMG LLP. Allegations included RMRF facilitating fraudulent transactions and KPMG issuing misleading financial statements at Mr. Barlas's direction.
Oppressive Conduct: The court found Mr. Barlas engaged in oppressive conduct, supported by enabling actions from legal and accounting professionals, causing significant harm to the LKDFN companies.
Court's Decision: The court granted leave for derivative actions, confirming that the applicants met legal criteria: proper complainants, appropriate notice, good faith, and actions in the interest of LKDFN companies.
Relief Granted: The applicants were allowed to file claims against RMRF LLP and KPMG LLP. Costs for the application were awarded to the applicants, to be assessed as part of the derivative actions. Costs for RMRF's application for standing were also awarded on a party-party basis.
Costs and Awards: The total amount of costs or awards was not specified.
Court
Supreme Court of the Northwest TerritoriesCase Number
S-1-CV 2023 000 128Practice Area
Corporate & commercial lawAmount
Winner
ApplicantTrial Start Date
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