Ex-partners battle in court over Singapore, BVI- and HK-company shares
Five companies, three of them registered in Singapore, one in the British Virgin Islands and one in Hong Kong, are in the centre of dispute between their shareholders and directors, Ms Helina Chan and Mr Lim Chee Twang. All these companies, engaged in sourcing and selling artworks, belong to an art business called iPreciation, of which both sides were partners for several years.
Mr Lim is the owner of shares in each of Singapore, BVI- and HK-based companies, ranging from 0.001 to 40 per cent. He claims that these companies are operating as a group, and he is entitled to a 40 per cent stake of it. He accuses Ms Chan of misappropriating more than $8 mln from the companies, and refusing to pay out dividends when the companies had a cash of $10 mln. Also, by his words she excluded him from taking part in the management of the companies and wrongfully terminated as an executive director. He asks the court to order Ms Chan to buy out his shares in the companies at fair value.
On the other hand, Ms Chan affirms that she is the person who founded the business and owns it, and she gave Mr Lim a stake in the business only on account of their relationship, and not because they were real business partners. She insists that the five companies are separate entities, and are not subsidiaries of iPreciation.
Mr Lim is suing Ms Chan for mismanaging the company and oppressing his rights as a minority shareholder, and the current trial will determine whether Ms Chan has to buy him out. If he wins, the actual value of the shares will be determined separately.