Dec 8, 2015
A recent decision in a proposed securities class action reinforces the potential benefits to directors and officers in maintaining strong internal controls and conducting reasonable investigations, including, where appropriate, engaging and following the advice of external experts. In Rahimi v. SouthGobi Resources, Justice Belobaba refused to grant leave the plaintiff to proceed against several directors and officers, finding that they had satisfied the reasonable investigation defence in Part XXIII.1 of the Ontario Securities Act. This decision is noteworthy because it confirms that, in appropriate cases, directors and officers can rely upon the statutory protections in Part XXIII.1 to defeat personal claims against them at an early stage of the proceedings. For more information, click here.
Lawrence E. Ritchie
April 2020March 2020February 2020January 2020December 2019November 2019October 2019September 2019August 2019July 2019June 2019May 2019 April 2019March 2019 February 2019January 2019December 2018November 2018October 2018September 2018August 2018July 2018June 2018May 2018April 2018March 2018February 2018January 2018December 2017November 2017October 2017September 2017August 2017July 2017June 2017May 2017April 2017March 2017February 2017January 2017December 2016November 2016October 2016September 2016August 2016July 2016June 2016May 2016April 2016March 2016February 2016January 2016December 2015November 2015October 2015September 2015August 2015July 2015June 2015May 2015April 2015March 2015February 2015January 2015December 2014November 2014October 2014September 2014August 2014July 2014June 2014