Does a dispute between shareholders between directors of a private equity company constitute bad faith?
British Columbia, Canada
The following excerpt is from Jordan Enterprises Ltd. v. Barker, 2015 BCSC 559 (CanLII):
A dispute between shareholders does not necessarily indicate that one is acting in bad faith. This is even so in a situation where directors have failed to respond adequately or at all to alleged significant financial irregularity, have failed to provide full access to the financial records of the company despite a court order, and/or have not properly considered the request to commence an action for the company: Carr v. Cheng, 2005 BCSC 445 at para. 16.
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