Minority director secures injunction to prevent removal before oppression proceedings trial

The High Court granted an interlocutory injunction restraining the majority shareholders and the company from removing a minority shareholder as a director pending trial of oppression proceedings. The court determined that, although members generally have a statutory right to remove a director, there was credible evidence that the company may be a quasi-partnership in which the applicant had a legitimate expectation to participate in management. The court held that damages would not be an adequate remedy given the risk of irreparable harm to the applicant’s position and rights within the company. The injunction preserves the applicant’s ability to participate in board meetings and access information until the underlying oppression claim is determined, but the court made clear that this relief is exceptional and will be revisited at trial depending on the outcome concerning the quasi-partnership argument.