Q & M Dental Group wins arbitration case against AR Dental shareholders

It includes RM 5.4m in payable dividends.

The Singapore International Arbitration Centre (SIAC) ruled in favor of Q & M Dental Group (Singapore) Limited's Malaysia unit (QDGM) in a case against the shareholders of AR Dental Supplies (AR Dental).

The dispute involved agreements that facilitated QDGM’s acquisition of a 70% shareholding in AR Dental, including a sale and purchase agreement from March 2013, a shareholders agreement from July 2013, and a memorandum of deposit from December 2014.

The arbitral tribunal ruled that Tye Chee Wah, Chong Vooi Seong, and Chan Sing Cheong, the respondents, are jointly and severally liable to pay QDGM RM5.4m ($1.6m) as dividends and RM8.4($2.4) for the buyback of QDGM’s shareholding, with 10% annual interest from July 2013 until payment, less proceeds from the sale of certain property. 

Additionally, Pride Access must facilitate the sale of the property it owns, which was supposed to be deposited as security for payment on behalf of the three shareholders.

The SIAC also ordered AR Dental repay QDGM RM2.5 ($716.4) under shareholders' loans. 

The respondents are also liable for approximately RM545 ($156.4) in legal costs and arbitration expenses.

QDGM, represented by Shan Chambers, will proceed with recognising and enforcing the award in Malaysia. 

The group said that the award is not expected to materially impact the their operations or financial performance for the fiscal year ending 31 December.