May 2018 Archives

Valid Notice of Meeting but Invalid Rejection of Membership Applications

In London Humane Society, Re (decided 2010), Justice Granger of the Ontario Superior Court of Justice held that a notice of a special meeting of members, while less than conspicuous, was sufficient to put recipients on notice that the corporation was replacing its open membership with a closed membership. However, he went on to find that the board had arbitrarily rejected eight applications for membership and that this amounted to bad faith.

Democratic Interpretation of By-Law

In Chu v. Scarborough Hospital Corp. (decided 2007), the Ontario Divisional Court interpreted the by-laws of a hospital corporation such that the term of annual memberships extended for a full 12 months and were in effect at the time of the corporation's annual meeting.

No Free Ride for Non-Contributing Members

In D.S. Park Waldheim Inc. v. Nagy (decided 2008), Deputy Justice Freeman of the Ontario Superior Court of Justice held that minority members of a non-profit housing association were liable to contribute to the cost of subdividing the land so that members would be able to register the title of their lands.

Lack of Standing to Bring Proceedings Against an Unincorporated Association

In Varjacic v. Radoja (decided March 2018), Justice J.A. Ramsay of the Ontario Superior Court of Justice held that a corporation specifically incorporated to initiate litigation against the members of a unincorporated association had no standing to bring proceedings.

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