Sturm v. Sprott Resource Lending Corporation, 2014 BCSC 190
Ken McEwan, K.C. Successful for the Defendant Corporations in a Summary Trial Application to Recover Shares Forfeited under a Sunset Clause Provision in a Corporate Reorganization
The plaintiff held shares in a corporation which became the defendant corporation. Pursuant to a sunset clause in a plan of arrangement, the plaintiff was required to take action to ensure that his interests in the predecessor corporation flowed into the newly-formed corporations. The plaintiff failed to take any action despite repeated notice. Once the limitation period had expired and the plaintiff’s shares had been extinguished, the plaintiff brought a claim for the value of his now-extinguished shares. The defendants were successful on all grounds, and the claim was dismissed with costs. Read case here.