The Oppression Remedy In Ontario: Basic Principles

The oppression remedy is a statutory remedy available under section 248 of the Ontario Business Corporations Act (the OBCA). The statute allows certain complainants, principally but not exclusively shareholders, to apply to court for an "oppression remedy". In Ontario, this relief may be granted where a corporation's affairs have been caused to be "oppressive," "unfairly prejudicial," or "unfairly disregard" a complainant's interests.

In practice, Ontario courts will exercise their discretionary power under s. 248 where the conduct complained of is within one of the three above categories and violates a complainant's "reasonable expectations." While this publication is focused on the Ontario legislation, the oppression remedy under the Ontario legislation is highly analogous to the remedy available under the Canada Business Corporations Act (CBCA) which applies to federally incorporated companies.