The three dentists atop the Australasian Dental Group network are locked in a legal battle over the finances and future of their flagship company.
The three dentists atop the Australasian Dental Group network are locked in a legal battle over the finances and future of their flagship company.
Andrew Chan has won an interim injunction in the WA Supreme Court stopping his long-time business partners Ian Ho and Chandika Mahanama voting on his removal as a director of Australasian Dental Group Holdings.
Dr Chan’s barrister Konrad de Kerloy went to the court on Monday to fight the planned meeting and protest about his client being denied access to the flagship's financial records.
The injunction application was opposed by Dr Mahanama and Dr Ho, whose lawyer Kevin Dundo claimed Dr Chan had failed to provide information about companies that had been set up by the estranged director's wife.
Mr Dundo said one of these companies was operating about 750 metres from Australasian Dental Health premises. “We have been asking him questions about whether he has a direct or indirect interest,” he said.
Australian Dental Group Holdings is connected to about 20 dental surgeries across Australia through subsidiary companies, unit trusts or operating and marketing arrangements.
The network includes practices fronted by the three Australasian Dental Group Holdings directors, as well as operations headed by other dentists.
Proclaiming it was “founded by dentists for dentists”, the group promotes dental, denture and cosmetic services in suburban Perth, Mandurah, Bunbury, Kalgoorlie, Queensland and NSW.
Lawyer have been wrestling over a legal action launched in March by Dr Chan and his family trust company seeking to have a provisional liquidator appointed to Australasian Dental Group Holdings.
That application seeks orders that provisional liquidators be appointed to report on the the assets and liabilities of Australasian Dental Group Holdings, its solvency and the likely return to creditors of the company.
The warring directors and their respective legal teams are scheduled to hold mediation in the WA Supreme Court next Wednesday on Dr Chan’s provisional liquidation application.
Dr Chan also wants the provisional liquidator to report on whether the company has proper financial records.
Fighting Dr Chan’s injunction application on Monday, Mr Dundo told Justice Natalie Whitby he did not want next week’s mediation to proceed.
Mr Dundo agreed when Justice Whitby suggested the arguments about the companies set up by Dr Chan’s wife had been the catalyst for the push to remove him as a director of Australasian Dental Group Holdings.
But he rejected suggestions by Justice Whitby that actions by Dr Chan’s wife were not relevant to the matters before the court given he was neither a director nor shareholder of those entities.
Mr Dundo said these companies affect “the interests of ADG”.
Justice Whitby granted the injunction stopping the proposed vote on the removal of Dr Chan from the Australasian Dental Group Holdings board.
She also ordered Dr Ho and Dr Mahanama “take all necessary steps” to provide Dr Chan with quick access to all bank accounts operated by the flagship company.
She ruled the mediation go ahead on Wednesday and said the parties could come back to her afterwards if needed.
