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Magna Founder Stronach Claims Family Mismanaged Assets
Frank Stronach, who founded Canadian supplier Magna International Inc. in 1957, reportedly has filed a lawsuit in Ontario claiming his daughter and other family members are mismanaging the family’s assets and trust funds.
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Frank Stronach, who founded Canadian supplier Magna International Inc. in 1957, reportedly has filed a lawsuit in Ontario claiming his daughter and other family members are mismanaging the family’s assets and trust funds.
The 86-year-old billionaire describes the suit as a last-resort effort to resolve his concerns. His daughter Belinda, who chairs The Stronach Group, says her father’s allegations are false, adding that “family relationships within a business can be challenging.”
Frank Stronach, a colorful character in Canadian business and politics, launched unsuccessful campaigns in 1988 to win a seat in the country’s Parliament and in 2012 to become president of Austria. He also backed Belinda’s career in Canadian politics, which made her an influential cabinet minister and MP.
Stronach retired as Magna’s chairman in 2011 after winning court approval for a controversial plan to end the company’s dual-class stock structure. The scheme paid him and his family nearly US$1 billion. Stronach continued as honorary chair, but sold off almost all but 1 million shares in Magna.
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