The holding company that owns View Royal's Six Mile Pub, which is considered the oldest pub in B.C., has been ordered by a judge to liquidate their assets to repay the family of a part-owner, Eddy Ng, who died in 2016.
Justice Anthony Saunders explained his reasoning behind his Feb. 25 decision to order the liquidation 鈥� which he says is a "remedy of last resort."
Golden Spigot Pub Ltd. was created by the principal investors 鈥� Ng and David Wong 鈥� in 2002 for the purpose of buying the pub. They both agreed to raise $550,000 towards the purchase, however Ng was only able to raise about $380,000, most of which was raised by mortgaging his family home and from investments from his mother.
Ng's company, Eddy Ng Management Services Ltd, owned almost 40 per cent of the pub, while Wong, his wife, and other smaller investors owned the rest. After they bought the pub, Wong managed day-to-day operations while Ng managed the kitchen.
After about two years of the purchase, Ng became less involved in the restaurant's operations.
Ng's wife, Ling Zhu Ng, said her husband had developed a frozen shoulder and was unable to work, which led to a breakdown in his relationship with Wong.
"She was told by Eddy that when he attempted to return to the pub, David told him not to show up for work. Eddy then decided to stay home and look after his mother, and an aunt and uncle," noted the judge's decision.
Wong, however, claims Ng dealt with substance abuse that he kept hidden from his family and in 2024, three shareholders confronted Ng, demanding that he produce a doctor鈥檚 note confirming that he was drug-free, or that he leave his employment with the pub.
Wong said that he and other shareholders had no contact with Ng for four years until he returned to work in 2009, saying he had overcome his addiction, however Wong said Ng had neglected his responsibilities, missed work often, and did not comply with drug tests.
After Ng's death, his wife tried to sell his shares of the company to Wong on multiple occasions, but they couldn't agree on a price, which resulted in Ng's widow putting forward the petition to liquidate the company.
The judge found that though Wong could have dissolved his partnership with Ng due to the circumstances around his addiction, he took no steps to do so, and Wong was content to "continue to enjoy the benefit of the substantial capital contribution made by Eddy and Eddy鈥檚 mother, without them being compensated."
He noted that although Wong contributed more in the way of "sweat equity" than Ng did, Wong was reasonably compensated through salary and management fees, mentioning that shareholders were not paid dividends.
"I find it would be unjust and inequitable to allow the company to continue to benefit from the substantial capital Eddy was initially responsible for contributing," noted Saunders. "Now that Eddy has passed, it is proper that Eddy鈥檚 heirs have the opportunity to reap the value of his investment."
In recognition of what Saunders says is a "draconian" order, he has given the parties 90 days to obtain their own valuations and negotiate a mutually agreeable purchase price before liquidators are appointed.
