Supreme Court of Canada Victory
The Supreme Court of Canada rendered its reasons for judgment on December 19, 2008 for its June 20, 2008 decision approving the proposed $ 51.7 billion privatization of BCE Inc., the largest leveraged buyout in the world. An action was brought by debentureholders issued by Bell Canada (a subsidiary of BCE Inc.), who sought to prevent the court’s approval of the transaction on the ground that it would significantly reduce Bell Canada’s credit rating, and consequently the trading value of their debentures.
Langlois Kronström Desjardins (Raynold Langlois and Gerry Apostolatos) acted successfully for an intervening shareholder before the SCC.
It is a significant judgment in Canadian business law. It clarifies the law with respect to the nature of director’s fiduciary duties, the law with respect to the oppression remedy and the test for the approval of plans of arrangement under the Canada Business Corporations Act.