The former manager of GrowthWorks Commercialization Fund Ltd. remains embroiled in a legal dispute with the labour-sponsored fund over management fees and the planned dissolution of the fund.
The fund held a meeting on Sept. 12, where it sought shareholder approval to wind up the fund.
Although the fund’s its class A and class B shareholders approved the move, GrowthWorks WV Management Ltd., the fund’s former fund manager which controls its class C shares, voted against the resolution. And, as a result, the proposed dissolution of the fund was not approved.
The fund will now apply to the court for an order allowing for the liquidation to take place under court supervision, it says in its announcement.
Last month, the Ontario Superior Court of Justice ruled that the fund’s former manager was not entitled to the $1.4 million that it paid itself from the fund when it resigned as its manager in early 2017.
Read: Court rules in favour of labour-sponsored venture fund against fund manager
GrowthWorks WV Management had 30 days to appeal that ruling, and the fund now reports that the former manager will be appealing that decision.