Supreme Court of British Columbia Rules in Favour of Ximen Mining Corp. Against Dissident Shareholders
TSX VENTURE: XIM
Vancouver, British Columbia (FSCwire) - Ximen Mining Corp. (the “Company” or “Ximen”) is pleased to announce that it has been wholly-successful in its defense of a shareholder oppression action brought in the BC Supreme Court (the “Court”) against the Company and its directors by a group of dissident shareholders led by Mr. Allan Slaughter (the “Petitioners”). The Petitioners are all related in the sense that they are family, friends or clients of two investment advisors, Timothy Wyman and Greg Obertas of TD Wealth Private Investment Advice. The central element of the Petitioners’ claim against the Company was that, because of the handling of certain transactions by the Company, the Petitioners were, contrary to their expectations, unable to vote some of their shares at the Company’s 2017 annual general meeting.
In his reasons for judgment, in Slaughter v. Ximen Mining Corp., 2018 BCSC 573, dismissing the Slaughter group’s petition, Mr. Justice Skolrood concluded there has been no oppressive or prejudicial conduct by the Company or its directors. In concluding that most of the Petitioner’s affidavit evidence was inadmissible, Justice Skolrood stated that, “They failed to adduce this essential evidence as part of their case, i.e. in support of the petition, and it is not open to them to subsequently seek to “patch up” their case under the guise of reply evidence.” Skolrood J. then went on to state that, “… even if these affidavits were admissible, they are not sufficient to establish the reasonable expectations alleged. They are all crafted using identical “cookie cutter” language clearly intended to satisfy the legal test for oppression, which raises a question as to their veracity.”
The Court made clear that that law requires that a shareholder, such as Mr. Slaughter, who alleges oppression must establish, on the evidence, both a reasonable expectation and a violation of that expectation as a result of conduct that is oppressive or unfairly prejudicial; and found that Mr. Slaughter had failed to establish either element. The petition was dismissed in its entirety, with costs in favour of Ximen and its directors, as is customary.
The Company’s CEO, Chris Anderson, commented that, “We’re pleased to have this regrettable distraction from the Company’s mineral exploration business resolved so that we can get on with our efforts to prove out our projects and add shareholder value.”
On behalf of the Board of Directors,
“Christopher R. Anderson”
Christopher R. Anderson,
President, CEO and Director
Ximen Mining Corp. 604 488-3900
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