It is quite common in e-business for a corporation to do business in a particular jurisdiction and have no assets there. In case of a successful claim, the plaintiff would have to attempt to enforce his/her judgement in the corporate defendant’s jurisdiction.
In addition to being offshore, it is of the utmost importance also that there are no officers or directors of the corporation residing in Canada. Otherwise they may well find themselves answering for the corporation’s actions as the case below demonstrates.
In Tele-Direct (Publications) Inc. v. Canadian Business Online., Sheldon Klimchuck and Canadian Yellow Pages on the Internet Inc. the defendant, a Canadian resident, controlled and used U.S. –the based corporations to infringe the plaintiff’s trade-marks in Canada. Interim injunctions were issued against the defendants, which were ignored. In levying a fine against Mr. Sheldon Klimchuck, personally, the court found that it had jurisdiction over Mr. Sheldon. Further, the court found that he had purposely and intentionally attempted to circumvent its orders issued against the corporate defendants.