Intelysis was contacted by the legal representative of a shareholder in an active business who felt that he was being treated unfairly by his partner. An initial review showed that our client’s shareholding had been unlawfully diluted when his partner unilaterally issued additional shares to corporations that he controlled, effectively taking over control of the company. Having seized control, the partner then proceeded to execute a series of inappropriate transactions with non arms length entities, thereby diverting the profits of the company into his own pocket.

A forensic audit confirmed the details of the fraudulent share transactions and with this evidence in hand the Intelysis team was able to assist the client gain access to the company records under a shareholder oppression remedy. Subsequent work uncovered both the non-arms length transactions as well as a body of evidence detailing excessive expenditures by the partner, again unjustly enriching himself at the company’s expense.

With the evidence against him piling up, the other shareholder made a strategic move by putting the company into bankruptcy proceedings, but with the benefit of sound legal and financial advice, our client was able to recover substantial assets from the company.