Imprisoned after conviction for unlawful sexual connection with a patient, Dr Kul Vant Singh was later rapped over the knuckles for misleading the court in a dispute over the value of his share in Auckland medical service provider then known as East Care Ltd.
East Care, now known as Care Group, owns and operates a number of medical centres across Auckland. It has about fifty shareholders, predominately general practitioners. Prior to his conviction, Singh held 6809 shares; a 4.46 per cent shareholding. In 2019, he was sentenced to two years ten months imprisonment. Care Group gave notice to compulsory purchase Singh’s shareholding on grounds he was in breach of the company’s constitution. His conduct was ‘prejudicial to the best interests of the company,’ it said.
With no advance notice to Care Group, Singh got a High Court temporary injunction to block the compulsory purchase. Justice Venning subsequently ruled there was no need for urgency; it was not disputed that Care Group could take back the shares, it was just an argument about price. Care Group had been put to unnecessary legal cost. Singh was ordered to pay an increased contribution towards Care Group’s court hearing legal costs when he later withdrew his application for a permanent injunction.
Care Group says Singh’s shareholding was worth $904,100. Singh claims $1.13 million, based on a revaluation of Care Group shares near the time compulsory purchase was triggered. Justice Venning ordered the shares be compulsorily purchased at the lower figure of $904,100. Singh can recover damages if able to prove his shares had a higher value. Legal argument will turn on timing of the compulsory purchase notice.
Singh v. Care Group Ltd – High Court (14.03.22)
22.056