HC Surgical shareholder fails in bid to sue chief executive

Singapore

MINORITY shareholder Serene Tiong will not be able to sue HC Surgical Specialists' (HCSS) chief executive Heah Sieu Min for alleged breach of duties, with HCSS having raised its stake in Julian Ong's practice.

The Singapore High Court on Thursday dismissed the application by Ms Tiong, who held 100 shares in HCSS as at April 30, to bring a legal action in the name of the medical services group.

The court also ordered her to pay costs of S$10,000 plus "reasonable disbursements" each to the company and Dr Heah, HCSS said in a bourse filing late Thursday night.

In May, Ms Tiong alleged that Dr Heah, who is also executive director, had breached his duties as a director in relation to the acquisition of an additional stake in Julian Ong Endoscopy & Surgery (JOES) late last year.

HCSS said the High Court found that the acquisition was made "on commercial grounds, in good faith and in the company's interest". Further, Ms Tiong did not show "a legitimate and arguable case" and did not bring her application in good faith.

Dr Heah said: "The decision to acquire an additional interest in (JOES) was one that was made with the approval of the full board and always with the interests of the company and its stakeholders in mind."

HCSS bought a 51 per cent stake in Dr Ong's practice for S$2.2 million in February 2017, and another 19 per cent for S$3.8 million in a deal proposed in September 2019 and completed in October 2019. Ms Tiong bought her 100 HCSS shares in September 2019.

On Friday, HCSS said any personal disputes between Ms Tiong and Dr Ong should be resolved without involving HCSS.

In June 2018, Ms Tiong filed a complaint with the Singapore Medical Council (SMC) against Dr Ong, claiming that he and another specialist colluded to have sex with "vulnerable" female patients. The complaint moved to a disciplinary tribunal in May.

Shares of Catalist-listed HCSS closed flat at S$0.33 on Friday.