What is the effect of an injunction restraining the wife from selling, disposing of or voting her shares in a company to effect a sale or disposal of the assets of the company?

British Columbia, Canada

The following excerpt is from Crooks v. Crooks, 1986 CanLII 1313 (BC CA):

In the material filed on the injunction application, it was pointed out by the respondent that the financial state of that company at present makes it impossible for it to obtain further loans and to further encumber its assets. On this appeal the wife seeks to have the injunction granted in the terms originally sought before the chambers judge. It is urged that while the company may not find it possible to obtain further loans or to further encumber its assets, it could dispose of those assets by selling them and that it is against that possibility that the broader form of injunction is sought. There is no material to support such an order. Counsel for the appellant made reference to a decision in Manousakis v. Manousakis (1979), 10 B.C.L.R. 21 (S.C.). In that case the husband had stated that he intended to sell his interest in a company in which he was a 50 per cent shareholder, and leave Canada, and that he would not pay maintenance for support of the wife and infant child. In those circumstances, Trainor J. granted an injunction restraining the husband from selling, disposing of or otherwise reducing his shareholdings in the company or from voting his shares in the company to effect a sale or disposal of the assets of the company. He went on to say, of course, this did not include merchandise sold in the ordinary course of business.

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