Does bad faith and personal benefit play a role in determining personal liability?
Ontario, Canada
The following excerpt is from Zeifmans LLP v. Mitec Technologies Inc., 2019 ONSC 3643 (CanLII):
Although personal benefit and bad faith are factors in determining whether personal liability is an appropriate remedy, the absence of one of these elements does not foreclose the imposition of personal liability if that is the “fit” remedy in all of the circumstances: Wilson v. Alharayeri, at para. 50.
The oppression remedy exists to rectify the harm to a complainant. Oppressive conduct that does not yield a personal benefit may trigger personal liability on a director if the directors act in bad faith: Wilson v. Alharayeri, at para. 45.
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