CDN MSo­lar sues for­mer pres­i­dent Yu

CDN MSo­lar Corp. has sued its for­mer pres­i­dent, Sa­muel Yu. The com­pany claims that he wrong­fully took $331,579 and made an unau­tho­rized $300,000 loan to him­self.

Stockwatch Daily - - FRONT PAGE - By Mike Caswell

CDN MSO­LAR Corp., one of the qui­etest com­pa­nies listed on the Cana­dian Se­cu­ri­ties Ex­change, has filed a law­suit in the Supreme Court of Bri­tish Columbia against its for­mer pres­i­dent, Sa­muel Yu. The com­pany claims that Mr. Yu wrong­fully took $331,579 of the com pany’s mone y and took an unau­tho­rized $300,000 loan. The law­suit seeks the pay­ment of both amounts.

The al­le­ga­tions are con­tained in a no­tice of claim that CDN MSo­lar filed at the Van­cou­ver court­house on July 4, 2017. The sole de­fen­dant is Mr. Yu, a res­i­dent of Burn­aby’s South Slope neigh­bour­hood. He was the pres­i­dent of CDN MSo­lar un­til the board re­moved him dur­ing a meet­ing on Jan. 26, 2017.

The prob­lems, as de­scribed in the law­suit, go back to early 2014. Ac­cord­ing to CDN MSo­lar, Mr. Yu “wrong­fully and with­out le­gal jus­ti­fi­ca­tion” took pos­ses­sion of $331,579 that was in­tended for the com­pany. The money rep­re­sented the pro­ceeds of an ad­vance from a share­holder, the suit states. Mr. Yu de­posited the amount to his per­sonal bank ac­count at HSBC on March 7, 2014, CDN MSo­lar claims.

Ac­cord­ing to the suit, the com­pany de­manded the re­turn of the money many times, be­gin­ning on Feb. 5, 2016. De­spite those de­mands, Mr. Yu re­fused. CDN MSo­lar is seek­ing the court-or­dered re­turn of that amount, plus in­ter­est.

In ad­di­tion, CDN MSo­lar claims that Mr. Yu caused the com­pany to loan him $322,061. The loan, which came on Dec. 31, 2014, was done with­out au­tho­riza­tion of the com­pany’s board, the suit states. The money came in the form of a cheque that was signed by Mr. Yu alone. Of the money, $22,061 was ap­plied to ex­penses Mr. Yu had in­curred on be­half of the com­pany, leav­ing $300,000 owing, ac­cord­ing to the suit. CDN MSo­lar claims that it de­manded pay­ment on Jan. 18, 2017, but Mr. Yu has so far failed or re­fused. The com­pany is seek­ing the court-or­dered re­turn of that amount as well.

Van­cou­ver lawyer Ron­ald Joseph­son filed the law­suit on be­half of CDN MSo­lar. Mr. Yu has not yet filed a re­sponse.

CDN MSo­lar had noth­ing to say about Mr. Yu’s de­par­ture when it fired him in Jan­uary, not even is­su­ing a news re­lease about the event. The com­pany is un­doubt­edly one of the qui­etest on the CSE, with just two news re­leases ap­pear­ing un­der its sym­bol since it listed on April 7, 2014. The stock is equally quiet, hav­ing barely traded in that three-year span. Its only trade in the three months lead­ing up to the law­suit was on Jan. 23, 2017, when 3,000 shares changed hands at a penny.

Guo Hua Cui, Ji Wu Li, Thur­man Tat Hong So, Lin Hoi Yu, Xian Jun Zong

(CMS) Shares: 21,927,584

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.