Is there any case law where Directors of Industries Ltd have been found guilty of failing to prevent employees from moving to another company?

British Columbia, Canada


The following excerpt is from Carlson v. Trans-Pac Industries Corp., 1989 CanLII 2870 (BC SC):

The plaintiff argues that, nevertheless, the directors should have attempted to persuade the employees to remain in Industries’ employ. He relies upon the reasoning in Scottish v. Co-op., an example of which is this passage from the speech of Lord Denning, at p. 88: “It is said that these three directors were, at most, only guilty of inaction – of doing nothing to protect the company. But the affairs of a company can, in my opinion, be conducted oppressively by the directors doing nothing to defend its interests when they ought to do something – just as they can conduct its affairs oppressively by doing something injurious to its interests when they ought not to do it. The question was asked: What could these directors have done? They could, I suggest, at least on behalf of the company, have protested against the conduct of the society. They could have protested against the setting up of a competing business. But then it was said: What good would that have done? Any protest by them would be sure to have been unavailing, seeing that they were in a minority on the board of the society. The answer is that no one knows whether it would have done any good. They never did protest. And it does not lie in their mouths to say it would have done no good, when they never put it to the test.”

Other Questions


Are there any cases where a director resigned but failed to inform employees for 2 months that the company was no longer operating? (British Columbia, Canada)
Can a lawyer be found guilty of professional misconduct for placing funds with a mortgage brokerage company when he knew that the registration of the company was under suspension? (British Columbia, Canada)
Is there a new trial for the defence in the case of a man who was found not guilty of assault but found guilty of the charge on self-defence? (British Columbia, Canada)
Is there a fiduciary relationship between a director of a private equity company and the director of the company? (British Columbia, Canada)
When a managing director of a company acts in breach of his fiduciary duties to the company, does he have to disclose to the purchaser of a part of the company’s business? (British Columbia, Canada)
In what circumstances will the Director of Directors of a Corporation be able to claim that a claim against the Corporation is based on an allegation that the Corporation has not paid the Director a fair share of the proceeds of litigation? (British Columbia, Canada)
In what circumstances will a realtor be found guilty of negligence in relation to an allegation that the realtor or the selling realtor failed to conduct a proper and proper investigation before the sale of the property? (British Columbia, Canada)
Can a lawyer be found guilty of professional misconduct for failing to disclose that he no longer holds funds in trust for his clients? (British Columbia, Canada)
What is the test for determining whether an employee has been found guilty of misconduct in the workplace? (British Columbia, Canada)
What is the test for determining whether an employee has been found guilty of misconduct? (British Columbia, Canada)
X



Alexi white


"The most advanced legal research software ever built."

Trusted by top litigators from across North America.