A boat travels past the Parkland Burnaby Refinery on Burrard Inlet at sunset in Burnaby, B.C., on Saturday, April 17, 2021. THE CANADIAN PRESS/Darryl Dyck
CALGARY – Parkland Corp.’s largest shareholder says it is taking legal action against the company in light of what it calls an attempt by Parkland to insulate its board of directors and CEOfrom accountability.
Simpson Oil, which is based in the Cayman Islands, escalated its months-long dispute with Calgary-based Parkland onMonday.
Simpson, which owns about 20 per cent of Parkland shares, said it has filed an application with the Ontario Superior Court of Justice seeking a declaration that the voting restrictions currently in place due to a 2019 agreement between Simpson and Parkland are no longer valid.
Simpson agreed in 2019 to a range of provisions aimed at ensuring it would not be able to exercise undue influence and control over Parkland in pursuing its own interests.
But tensions between Simpson and Parkland have since escalated. Last December, two Simpson-nominated directors resigned from the board, and Simpson has called on Parkland to conduct a strategic review that would include the consideration of a possible sale of the company.
Parkland said Tuesday it remains open to a constructive solution with Simpson, but added it believes Simpson is seeking greater influence over Parkland’s board than is in the best interests of all shareholders.
This report by The Canadian Press was first published Aug. 14, 2024.
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