Can a director or company be oppressive even if they have no legal right to commit a certain act?
Nova Scotia, Canada
The following excerpt is from Richards v. Richards, 2013 NSSC 163 (CanLII):
The Court in Paley v. Leduc, [2002] B.C.J. No. 2845 (S.C.), at paragraph 26, stated: “[I]f the director or company has no legal right to commit a certain act, the act may be considered oppressive even if there was no mala fides; however, if it was a legally authorized act, there should be an element of bad faith for it to be oppressive.”
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