LOLG Successful in Application to Wind Up Corporations

On August 28, 2025, the Ontario Superior Court of Justice released its decision in Danny Finoro Holdings et al. v Claysam Homes Ltd., 2025 ONSC 4914. The case concerned an application to wind up two related corporations in circumstances where the shareholders were unable to agree on basic governance issues and the corporations’ operations were effectively at a standstill. Justice Fowler Byrne granted the application and held that the applicants had established that the respondent’s conduct had caused unfairness to the applications that had serious financial consequences, and that a wind up of the corporations was the only viable solution. 

The case serves as a useful precedent for contested wind-ups, and includes interesting facts, including a unanimous shareholders agreement that attempted to avoid deadlocked disputes by including a “Casting Voter” provision. 

Andrew Winton and Annecy Pang were counsel for the successful applicants. The decision can be found here.