[49] Both respondents also argue that a conflict of interest is allowed when full disclosure is made in advance of the conflict and is properly approved by shareholders or members. Both cite Canadian Aero Service Ltd. v. O’Malley, 1973 CanLII 23 (SCC), [1974] S.C.R. 592, at para. 24, and Barry Reiter’s Directors Duties of Canada, 3rd ed. (Toronto: CCH Canadian Ltd., 2006), as authority for this exception.
[50] This exception applies here, as the respondent Mohinder made it clear to SHC, in advance, that he wanted to purchase the property.
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