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ARTICLE · 07 APRIL 2014

Achilles Motors — Temporary Dissolution Is No Achilles’ Heel

Gowling WLG
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The Ontario Court of Appeal has affirmed case law and the OBCA concerning the retroactive effect of the statute’s corporate status revival provision.

CanadaLitigation, Mediation & Arbitration
Brent Arnold
Brent Arnold
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The Ontario Court of Appeal has affirmed earlier case law and the plain language of Ontario's Business Corporations Act, R.S.O. 1990, c. B.16 (the "OBCA") concerning the retroactive effect of the statute's corporate status revival provision.

In Achilles Motors Limited v. 1717222 Ontario Inc., 2014 ONCA 139, Achilles appealed the dismissal of its application to have an agreement of purchase and sale with the respondent 171 declared void because the numbered company had been dissolved and not yet revived at the time the parties entered into the contract. Neither party had been aware of the dissolution (which occurred following 171's failure to file a Notice of Change Form 1) at the time of contracting, and 171 acted immediately to have the company's charter reinstated upon being informed by Achilles' counsel of the lapse a year and a half later. The charter was reinstated within two months.

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