Legal Question in Business Law in Canada

Possible corporate acquisition fraud
Scenario:

There are four companies; A, B, C, and D. I own company D.
I signed a Promise to Sell with Company A in Aug 2007.
Company A was finalizing an acquisition with Public Company B.
Company A had starting the process to acquire (RTO) Public Company C.
Company A is now major shareholder in Company C . The agreement that Company A was negotiating with my Company D, was to issue x number of shares of Public Company C. Problems occurred between Company A and Company B, and that transaction has not yet been completely. Public Company C/A keeps stalling on our agreement (due Dec 31, 2007.)

Shares for Public Company C are halted and for Company B are suspended.

None of these companies have yet officially changed ownership in the CEDREQ records.

There is some activity in SEDAR where Company C/A seems to be scrambling to file financial and management reports.

Company C/A is now considering negating on our agreement, they have a been operating and managing my Company D for nine months.

My question; Is there a law that could be preventing Company A/C from honouring our agreement; hence the delays?

Asked on 5/08/08, 5:23 pm

Robert Brouillette Brouillette & Partners

0 users found helpful

0 attorneys agreed

Re: Possible corporate acquisition fraud

Hi,

Unfortunately, your question is too complicated for a simple answer.

I do not believe anyone can answer without reviewing the related documentation.

Regards,

Robert Brouillette

Answered on 5/08/08, 6:04 pm

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