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.
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