In what circumstances have the Bignolds been granted leave to bring a derivative action?
Alberta, Canada
The following excerpt is from O’Fearghail Holdings Ltd. v. Bignold, 2001 ABQB 514 (CanLII):
The Bignolds cite Bêtons Bomix Concrete Ltd./Ltée v. Kennedy [1994] N.B.J. No. 236 (N.B.Q.B.) in connection with the submission that the reactive nature of this application demonstrates an absence of good faith. There former shareholders of a company had sued the current principals of the company alleging they had conspired to harm the company causing a drop in the value of the shares the plaintiffs had sold them. The new principals of the company had defended on the basis that the loss allegedly suffered was the company’s loss not the plaintiffs’. This defence inspired an application for leave to bring a derivative action.
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