The two taxpayers (Mrs. Gariepy and Mrs. Chriss) were appointed as the two directors of an Ontario corporation ("105") which was run by their husbands. In 2001, the husbands decided that it was time for them to replace their wives as directors, and corporate counsel prepared written resignations on the instructions of Mr. Chriss. However, the resignation forms were never provided to the taxpayers, perhaps because legal accounts were unpaid.
In finding that the taxpayers had resigned in 2001, so that 2008 assessments of them under s. 227.1 were not permitted, Boyle J stated (at para. 25) that "the OBCA specifies that a resignation be written but not that it be signed" and noted (at para. 22) that "all of the directors, officers and principals of the company understood the wives were resigning at that time" which "means that the company clearly understood they resigned."