Sparling v. Royal Trustco Ltd., [1986] 2 SCR 537

Sparling v. Royal Trustco Ltd., [1986] 2 S.C.R. 537

Royal Trustco Limited, Kenneth Alan White, John Dykes Allan, the Honourable Reginald James Balfour, Robert Gilmour Bentall, George Drummond Birks, Donald Newton Byers, James McIntyre Cameron, Alistair Matheson Campbell, Keith Campbell, Charles Joseph Clark, Henry Collingwood, Fraser Matthews Fell, Eric Lyon Hamilton, Conrad Fetherstonaugh Harrington, Frederick William Pryce Jones, Egerton Warren King, Angus Athole MacNaughton, John Frederick McDougall, the Honourable Maurice Riel, John Merton Scholes, David George Waldon, Allan Walters and Marshall Mackenzie Williams            Appellants

v.

Frederick Herbert Sparling, Director appointed under section 253 of the Canada Business Corporations Act                   Respondent

indexed as: sparling v. royal trustco ltd.

File No.: 18597.

1986: November 3; 1986: November 6.

Present: Estey, McIntyre, Chouinard, Wilson and La Forest JJ.

on appeal from the court of appeal for ontario

                   Corporations ‑‑ Take‑over bids ‑‑ Directors’ circular of offeree corporation failing to meet statutory disclosure requirements ‑‑ Director appointed by Minister under s. 253  of the Canada Business Corporations Act  entitled to bring action for compensation on behalf of the aggrieved shareholders ‑‑ Director’s action may be brought against both the offeree corporation and its directors.

                   Held: The appeal should be dismissed for the reasons given in the Ontario Court of Appeal.

                   APPEAL from a judgment of the Ontario Court of Appeal (1984), 6 D.L.R. (4th) 682, 24 B.L.R. 145, 45 O.R. (2d) 484, 1 O.A.C. 279, allowing respondent's appeal from a judgment of Trainor J. (1983), 143 D.L.R. (3d) 112, 21 B.L.R. 97, 32 C.P.C. 291, striking out certain portions of respondent's statement of claim. Appeal dismissed.

                   W. A. Kelly, Q.C., and R. D. Collins, for the appellant Royal Trustco Ltd.

                   J. J. Robinette, Q.C., and H. C. G. Underwood, for the other appellants.

                   E. R. Murray, Q.C., and N. Gillespie, for the respondent.

                   The following is the judgment delivered by

1.                The Court‑‑Assisted by the concise and comprehensive submissions by all counsel, the Court has concluded that all the issues raised in this appeal were fully and correctly dealt with by the Court of Appeal, speaking through Cory J.A. This appeal is, accordingly, dismissed with costs.

                   Appeal dismissed with costs.

                   Solicitors for the appellant Royal Trustco Ltd.: Fasken & Calvin, Toronto.

                   Solicitors for the other appellants: McCarthy & McCarthy, Toronto.

                   Solicitors for the respondent: Cassels, Brock & Blackwell, Toronto.