Our associate Taras Kulish was recently involved in a decision at the Court of Appeal for Ontario in Ustymenko v. Sadochok Centre Inc. (Sadochok Preschool Centre). The Appellants sought leave to commence a derivative action based on allegations that a former director had misappropriated money in her capacity as director and derived personal benefit from the respondent Centre. The three judges of the Court of Appeal stated that: “The evidence did not disclose that K.K. was paid as a director but as an administrator and bookkeeper. The Board of Directors investigated the allegations as did the Public Guardian and Trustee who decided to take no further material action. Moreover, the application judge determined that the action was “bound to fail”.” The judges agreed with the application judge. The appeal was dismissed and costs were awarded to the Centre. In this appeal, Taras Kulish represented the Centre, a registered Canadian charity. Read the decision here.
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