On July 1, 2015, the Supreme Court of Canada released its decision in R v. Kapp. The case involved a dispute over whether members of the family trust were improperly excluded from voting on decisions relating to shares held by one or more other members of the family trust estate. Six individuals claimed that they had been excluded from voting on these issues because their interests were subject to personal protection legislation under British Columbia’s Personal Property Security Act (PPSA). The court found that PPSA did not apply to these matters and that there was no evidence that any member of this family trust had ever suffered loss as a result of fraud or misrepresentation by any other member acting alone or without fraud. As such, it concluded that PPSA did not give rise to an interest protected under s 15(1)(a) – “interests for which registrability is required” – or s 15(2) – “property for which registration is required”-of the Securities Act (Ontario), RSO 1990, c S15; SC 2000, c S60 .
The issue before Justice Eglinski was whether persons who are entitled but unregistered may be considered owners within s 11(16) (the definition section dealing with ownership interests in securities) if there has been fraud or misrepresentation by another person acting alone or without fraud against them? If so then does this create an interest protected under s 15(1)(a)? Does