THE QUICKENING OF FIDUCIARY OBLIGATION: CANADIAN AERO SERVICES V. O'MALLEY

Abstract

The Supreme Court of Canada’s decision in Canadian Aero Services v. O’Malley provided a vital signal to the judiciary on the regulation of corporate fiduciaries, and opened the gates to shareholder litigation. After introducing the doctrine of corporate opportunity, the expansion of this doctrine in the Delaware courts and its obscure definition in Canadian courts, this article discusses the implications of the O’Malley decision. It argues that the lack of definition in Canada is positive because it allows ample room to test the standard of fiduciary duty in each case, and the author foresees the judgment playing the same pivotal role in the development of Canadian corporate law as jurisprudence played in the United States.