Current and former shareholders of the company that owned Sakura Sushi in Whitehorse will battle over the company’s ownership in court. (Chris Windeyer/Yukon News)

Former Whitehorse sushi restaurant shareholder to pursue suit against company director

A Yukon Supreme Court judge has given a former shareholder of the company that owned Sakura Sushi Japanese Restaurant in Whitehorse the go-ahead to pursue legal action against the company’s director for “the taking and/or diverting a business opportunity and profit as well as for misappropriation of funds.”

In a decision issued July 5, Yukon Supreme Court Justice Ron Veale gave Xun Wen permission to file a statement of claim on behalf of Qiu’s Restaurant Inc., which owned Sakura, against company director Guo Hua Qiu.

Wen and Qiu are both equal shareholders of Qiu’s Restaurant Inc., which opened Sakura in 2008. That restaurant shut down in October 2015.

A month later, according to Veale’s decision, Qiu had incorporated 535993 Yukon Inc., of which he is director and Wen holds no shares. On Jan. 21, 2016, 535993 Yukon Inc. opened a new sushi restaurant, Golden Sakura Sushi Japanese Restaurant, in the same location as Sakura using the same equipment, inventory and liquor licence.

Qiu also issued a $100,000 cheque to himself from Qiu’s Restaurant Inc., which Qiu said he later spent on covering the company’s expenses, and authorized $7,500 in legal fees while Sakura was closed, Veale wrote.

Qiu argued that closing Sakura was in the company’s best interests because “its funds were being misappropriated by members of Mr. Wen’s family,” the decision says, but, “without further specific evidence, the Court cannot draw any inferences from these documents.”

“On balance, at this stage, the derivative action appears to be in the interests of Qiu’s Restaurant Inc.,” Veale wrote.

Contact Jackie Hong at jackie.hong@yukon-news.com

RestaurantsYukon courts

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Zoning amendment approved for Black Street property

Bylaw change will allow suite to be built over existing garage despite side, rear setbacks

Yukon borders to reopen July 1, masks required at all Yukon airports

Yukon moves to Phase 2 of reopening on July 1

Runners race Reckless Raven

Nearly 60 Yukoners completed the fourth annual Reckless Raven 50-mile Ultra and… Continue reading

Local gardener asks for return of wagons

Alice Cyr grows vegetables for her condo, but has had two wagons stolen in the last two weeks

YukonU instructor pens letter urging immediate action to address systemic racism

A Yukon First Nations instructor at Yukon University has penned a letter… Continue reading

Ancient lake bed sediments, unusual plants are markers of the Takhini salt flats

It’s one of the Yukon’s best open geological secrets, a well-known but… Continue reading

Yukon University hires director of finance

Yukon University announced in a press release on June 29 that Sheila… Continue reading

Diamond Tooth Gerties to reopen

The Klondike Visitors Association (KVA) announced in a press release on June… Continue reading

Newly-elected Liard First Nation chief accuses YG of interfering with election

Stephen Charlie says YG’s announcement days before election endorsed previous chief

COMMENTARY: Shifting the prevailing narrative of substance use

Blood Ties Four Directions Centre Special to the News Rarely does society… Continue reading

Alexco nearing production at Keno Hill mines

Alexco Resource Corp. is entering the final phase of development at its… Continue reading

Literacy award nomination deadline approaching

Nominations for the 2020 Council of the Federal Literacy Award will remain… Continue reading

City hall, briefly

A look at decisions made by Whitehorse city council this week

Most Read