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<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published April 9, 2010
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Doctor vs doctor in hospital board dispute
Battle for board control in private hospital project headed for arbitration
By CHEN HUIFEN
(SINGAPORE) An ambitious private hospital project led by a group of doctors has been hit by a squabble among shareholders over who should have the rightful control of the board.
BT understands that Singapore Healthpartners Pte Ltd (SHP), which owns the hospital-and-hotel development next to Farrer Park MRT Station, is now at the centre of an arbitration case that has divided the 40 doctors behind the project and other investors into two camps. One of them is in support of orthodontist Djeng Shih Kien and another is on the side of cardiologist Maurice Choo.
Dr Djeng, who mooted the idea of a hospital-and- hotel development driven by doctors, founded SHP in 2006. He became the first executive chairman of the board after the company won the tender for the site on Race Course Road.
He stepped down as chairman in March last year, although it is unclear if he resigned or was removed from the position. Dr Choo then took over as chairman and replaced Dr Djeng as the spokesman for SHP when the company launched its medical suites in the middle of the year.
But a dispute has been simmering, with the matter first headed for arbitration, then making its way to the High Court before the court sent it back for arbitration again.
It seems that the shareholders are in disagreement on the validity of the appointment of current directors. According to an investment agreement, for every 10 per cent interest owned, the shareholding party is entitled to nominate one person to the board. This means that Berjaya Leisure (Cayman) Ltd and Wharton Scott, who each own 20 per cent of SHP, are entitled to two seats apiece on the board.
Dr Djeng, who owns 10 per cent of SHP, and architect Lim-Tan Suat Hua, who also holds a 10 per cent interest, would then get one seat each.
But the key issue lies with a nearly 40 per cent interest collectively owned by small shareholders who are largely doctors. The way this is carved out could affect the balance of power between the two camps.
Dr Djeng and his supporters are apparently of the view that, if this group is split, the nominees should correspond to their shareholding.
So if one camp among small shareholders has just over 10 per cent of shareholding and the other has just over 20 per cent, presumably they should be entitled to one and two seats respectively. This would mean just three seats for small shareholders.
Dr Choo's camp is in favour of the entire group of small shareholders collectively appointing four directors to the board. This would result in a total of 10 board members, as it is now.
An extraordinary general meeting was to have been carried out last December to remove the existing four directors appointed by the collective small shareholders. Ahead of this, on Nov 3, Dr Djeng and Berjaya initiated arbitration. On Dec 7, Dr Choo's camp filed an originating summons and the Dec 11 EGM was put on hold.
Dr Djeng and Berjaya are represented by Eugene Thuraisingam of Stamford Law Corp and Cavinder Bull of Drew & Napier respectively. Allen & Gledhill is acting for Dr Choo's side. The court has since ordered that the case return to arbitration proceedings.
As arbitration proceedings are confidential, none of the parties are able to provide details.
The property is slated to open by the end of next year, according to past media reports. The development, called Connexion, integrates a four-star hotel, a specialist medical centre and a 220-bed hospital within a complex.
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Doctor vs doctor in hospital board dispute
Battle for board control in private hospital project headed for arbitration
By CHEN HUIFEN
(SINGAPORE) An ambitious private hospital project led by a group of doctors has been hit by a squabble among shareholders over who should have the rightful control of the board.
BT understands that Singapore Healthpartners Pte Ltd (SHP), which owns the hospital-and-hotel development next to Farrer Park MRT Station, is now at the centre of an arbitration case that has divided the 40 doctors behind the project and other investors into two camps. One of them is in support of orthodontist Djeng Shih Kien and another is on the side of cardiologist Maurice Choo.
Dr Djeng, who mooted the idea of a hospital-and- hotel development driven by doctors, founded SHP in 2006. He became the first executive chairman of the board after the company won the tender for the site on Race Course Road.
He stepped down as chairman in March last year, although it is unclear if he resigned or was removed from the position. Dr Choo then took over as chairman and replaced Dr Djeng as the spokesman for SHP when the company launched its medical suites in the middle of the year.
But a dispute has been simmering, with the matter first headed for arbitration, then making its way to the High Court before the court sent it back for arbitration again.
It seems that the shareholders are in disagreement on the validity of the appointment of current directors. According to an investment agreement, for every 10 per cent interest owned, the shareholding party is entitled to nominate one person to the board. This means that Berjaya Leisure (Cayman) Ltd and Wharton Scott, who each own 20 per cent of SHP, are entitled to two seats apiece on the board.
Dr Djeng, who owns 10 per cent of SHP, and architect Lim-Tan Suat Hua, who also holds a 10 per cent interest, would then get one seat each.
But the key issue lies with a nearly 40 per cent interest collectively owned by small shareholders who are largely doctors. The way this is carved out could affect the balance of power between the two camps.
Dr Djeng and his supporters are apparently of the view that, if this group is split, the nominees should correspond to their shareholding.
So if one camp among small shareholders has just over 10 per cent of shareholding and the other has just over 20 per cent, presumably they should be entitled to one and two seats respectively. This would mean just three seats for small shareholders.
Dr Choo's camp is in favour of the entire group of small shareholders collectively appointing four directors to the board. This would result in a total of 10 board members, as it is now.
An extraordinary general meeting was to have been carried out last December to remove the existing four directors appointed by the collective small shareholders. Ahead of this, on Nov 3, Dr Djeng and Berjaya initiated arbitration. On Dec 7, Dr Choo's camp filed an originating summons and the Dec 11 EGM was put on hold.
Dr Djeng and Berjaya are represented by Eugene Thuraisingam of Stamford Law Corp and Cavinder Bull of Drew & Napier respectively. Allen & Gledhill is acting for Dr Choo's side. The court has since ordered that the case return to arbitration proceedings.
As arbitration proceedings are confidential, none of the parties are able to provide details.
The property is slated to open by the end of next year, according to past media reports. The development, called Connexion, integrates a four-star hotel, a specialist medical centre and a 220-bed hospital within a complex.
</TD></TR></TBODY></TABLE>
