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The Obligation of Good Faith on Derivative Applications Narrowed

Holdyk v. Adolph, 2012 BCCA 37

Does the intention to wind up a company demonstrate a lack of good faith for those seeking to bring a derivative action?

This is an appeal from a dismissal of an application for leave to commence a derivative action. The main allegation by the appellant was that a bank account had been opened by the respondents using forged documents and then roughly $340,000 was diverted or withdrawn within a couple of months. The appellants sought to bring an action in the name of the company for this loss.