owner of Holdco, wrongfully excluded Dale, a co-shareholder

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CONVENTION ENTRE ACTIONNAIRES
CHAN C. 160466 ONTARIO INC., 2011 ONSC 5654 • [45] Under the shotgun provisions of the Agreement, in the event that the respondent shareholder offerees did not accept Mr. Chan’s July 14, 2010 Offer to Purchase or Sell the shares of himself and Ms. Chau, then the offerees were deemed to have accepted the offer of Mr. Chan and Ms. Chau to purchase their shares. The Agreement provided a mechanism to put into effect such a deemed acceptance which would result in the acquisition of the respondents’ shares by Mr. Chan and Ms. Chau: see Articles 3.04(6) and (7). • [46] Yet, Mr. Chan did not pursue the respondents’ deemed acceptance of his offer. Instead, in this proceeding he took the opposite position to that reflected by his Offer – i.e. he sought an order requiring the respondents to buy him out. It was not reasonable for Mr. Chan to expect that, having invoked the provision of the Agreement’s shot-gun, yet failing to follow through on the consequences of the deemed acceptance of his offer to purchase, the respondent shareholders somehow would become obliged to buy his shares. 28
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