Woman who won defamation suit brought by Dr Julian Ong says HC Surgical CEO breached duties as director

SINGAPORE (THE BUSINESS TIMES) - Serene Tiong, a shareholder in HC Surgical Specialists and the defendant in a failed defamation lawsuit brought by the medical services group's surgeon Julian Ong, has claimed that HC Surgical chief executive officer (CEO) and executive director Heah Sieu Min breached his duties as a director.

This is in relation to HC Surgical's acquisition of an additional 19 per cent interest in Dr Ong's private practice, Julian Ong Endoscopy & Surgery (JOES), late last year, according to an April 30 letter from Ong Ying Ping ESQ, solicitors for Ms Tiong who holds 100 shares in HC Surgical.

The medical services group said in a filing late Tuesday night (May 5) that it has consulted its legal adviser in relation to the allegation and is of the view that the allegation is "frivolous" and "without merit".

In June 2018, Ms Tiong lodged a complaint with the Singapore Medical Council against Dr Ong, claiming that he and another specialist colluded to have sex with "vulnerable" female patients. She also forwarded the complaint to other doctors, prompting Dr Ong to file the defamation lawsuit against her, which he lost in April.

The surgeon's practice is now a 70 per cent-owned subsidiary of HC Surgical. The Singapore-listed group first bought 51 per cent of JOES in February 2017 for $2.2 million, before raising its stake by 19 per cent in October 2019 for $3.8 million.

On Monday, in replying to further queries from the Singapore Exchange, HC Surgical clarified that it will receive more than what it paid for the 70 per cent interest if it were to exercise a put option to require Dr Ong to buy back the stake. The put option will become exercisable if Dr Ong's employment is terminated.

Shares of Catalist-listed HC Surgical fell $0.01 or 2.9 per cent to close at $0.34 on Tuesday before the announcement was made.