Respondent
Petitioner
Case Overview:
Amarjit Singh Bhatti and Kuldeep Singh Bhatti (petitioners) brought claims against Yellow Cab Company Ltd. and several directors, alleging violations of corporate governance rules related to share transfers.
Legal Issues:
The petitioners argued that Yellow Cab directors, including Kulwant Sahota and Kulwinder Saini, breached Article 4.1(d) of the company’s articles by allowing share transfers without following required procedures. They claimed this breach constituted a failure in directors' fiduciary duties under Section 142(1) of the British Columbia Business Corporations Act (BCA) and that these actions were oppressive under Section 227 of the BCA. They also sought permission for a derivative action to pursue claims on behalf of the company.
Court Findings:
Justice Latimer found that the petitioners did not prove any breach of the company’s articles or fiduciary duties by the directors. Evidence from Yellow Cab’s General Manager, Carolyn Bauer, showed that required procedures were generally followed. The court held that the petitioners failed to show they experienced direct or special harm to justify claims of oppression and failed to satisfy conditions for a derivative action under the BCA.
Conclusion and Costs:
The court dismissed the petition entirely and ordered the petitioners to pay costs to the respondents, though the judgment did not specify the exact cost amount.
Court
Supreme Court of British ColumbiaCase Number
S246819Practice Area
Corporate & commercial lawAmount
Winner
RespondentTrial Start Date
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