Is a shareholder entitled to recover for a wrong done to the corporation?
Ontario, Canada
The following excerpt is from Tran v. Bloorston Farms Ltd., 2020 ONCA 440 (CanLII):
Of course, when wrongs have been committed so that both the corporation and shareholder have causes of action, care must be taken to ensure that the shareholder's personal action is not really an action for a wrong done to the corporation (for which the corporation, and only the corporation, can sue). In other words, even when the shareholder has a personal claim, the rule in Foss v. Harbottle may apply to prevent the shareholder from going beyond that personal claim to recover for a wrong done to the company.
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