Can a mismanagement of the funds of a family business constitute defalcation or misappropriation?
British Columbia, Canada
The following excerpt is from Canex Investment Incorporation v 0799701 B.C. Ltd., 2019 BCSC 1414 (CanLII):
In Valastiak v. Valastiak, 2010 BCCA 71, our Court of Appeal considered whether a mismanagement of the funds of a family business could constitute defalcation or misappropriation, and whether misappropriating the funds of a family company by a director husband could be a breach of fiduciary duty extending to the interests of the minority shareholder wife.
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