SINGAPORE - Two China-based subsidiaries of OUE Lippo Healthcare, formerly known as International Healthway Corp, are facing a lawsuit by an individual claiming a majority share in one of those units.
OUE Lippo said on Monday (Oct 30) that it was notified on Oct 27 that on or around Aug 29, a Mr David Lin Kao Kun had begun new legal action against its China subsidiaries, Shanghai Yilin Medical Management Consulting and Wuxi Yilin Health Management, as a third party, before the Shanghai Pudong New District Courts.
Mr Lin alleges that he had entered into an agreement with Wuxi Yilin Health on or around June 5, 2014, for Wuxi Yilin Health to hold its approximately 71 per cent of the shares in Shanghai Yilin on trust for him, in consideration of him performing a capital injection into Shanghai Yilin.
On this basis, Mr Lin is seeking a court order determining that he is the owner of the 71 per cent shares in Shanghai Yilin.
OUE Lippo said it has been advised by its China counsel that its subsidiaries have a reasonably strong defence against the claim, and they will vigorously defend against it.