MGX Minerals Inc (CSE:XMG) (OTCMKTS:MGXMF) announced Thursday that the Supreme Court of British Columbia has confirmed that Jared Lazerson is CEO of the company.
The court’s decision ends a months-long dispute between the company and two board members who attempted but failed to oust Lazerson during a meeting on October 7.
The two board members, Lyndon Patrick and Michael Reimann, had tabled a motion to remove Lazerson while Lazerson and another director, Andris Kikauka, voted against it.
READ: MGX Minerals issues clarification related to unauthorized press release sent by two board members
As the meeting’s chair, Lazerson exercised the deciding vote in favor of remaining as CEO. Patrick and Reimann were advised by the company’s legal counsel during the meeting that neither MGX’s articles nor the British Columbia Corporations Act prohibited Lazerson from voting on the motion -- which was declared defeated.
The two directors then sent out and errant news statement saying Lazerson had been removed -- forcing the company to dismiss the statement and reiterate that Lazerson is still the CEO.
On December 5, Patrick and Reimann filed a petition with the Supreme Court of British Columbia seeking, among other things, a declaration that the motion of October 7 had been duly passed.
Lawyers for both sides appeared in court on January 17 to argue whether Lazerson was entitled to vote on the motion, and by extension, whether he is still the CEO and signing authority of the company.
Madam Justice Shelley Fitzpatrick delivered her decision on January 17, ruling that Lazerson was not prohibited by the company's articles or the Business Corporations Act from voting on the motion.
“The Court decision of January 17, 2020 confirms that Mr. Lazerson is, and at all times since October 7, 2019 has been, the Company's President, CEO, and signing authority,” the company said.
The court also ruled that Patrick and Reimann must pay legal costs to both MGX and Lazerson.
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