Frequently Asked Questions

What happens in a shareholder deadlock?

Deadlock can arise when the company’s governance machinery no longer allows necessary decisions to be made — for example, because of equal voting power, tie votes at the board level, veto rights, or the collapse of agreed decision-making processes. Ontario law offers several ways to address deadlock, including requisitioning a meeting under OBCA s. 105, seeking a court-ordered meeting under s. 106, asking the court to determine controversies over elections or appointments under s. 107, pursuing oppression relief, or, in sufficiently serious cases, seeking winding-up.

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