Does a shareholder of a bankrupt corporation have priority over all other creditors of the bankrupt corporation?
British Columbia, Canada
The following excerpt is from Roussy v Savage, 2019 BCSC 1669 (CanLII):
This rule continues to apply even after the bankruptcy of a corporation: see Hill v. Bridgemohan, 2008 NSSC 219 at para. 85 and the cases cited therein. To allow one shareholder to claim for a wrong done to a bankrupt corporation would effectively grant that shareholder priority over all its other creditors.
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