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ARTICLE · 28 SEPTEMBER 2017

Balancing Act

For a private company involved in legal proceedings, a request by other parties for the disclosure of its financial statements can be cause for concern...

CanadaCorporate/Commercial Law

For a private company involved in legal proceedings, a request by other parties for the disclosure of its financial statements can be cause for concern, due to the sensitivity of information and issues that may arise from disclosure.

When faced with such a request, judges often seek to balance the rights of the parties to ensure that no one is prejudiced or gains an undue advantage over the other.

This article examines how the protective measures ordered by the Superior Court of Quebec in Moose International Inc. v. Moose Knuckles Canada Inc. illustrate such a balancing act.

In that case, the plaintiffs allege that the defendants, one of which is a minority shareholder of the plaintiff Moose International Inc., are engaged in unfair competition and trademark infringement. In two judgments, the court orders two different sets of protective measures with respect to the disclosure of financial statements. The protective measures ordered by the court differ depending

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