Top Philippine hospital locked in dramatic boardroom row

Investors have misrepresented their shareholdings, watchdog rules.

Underhanded funding deals and a protracted dispute among leading shareholders are hounding The Medical City, a top hospital in the Philippines.

The dispute arose when minority shareholders accused the hospital's erstwhile treasurer of colluding with Singaporean investors to acquire a majority stake in the firm.

This led to an intervention by the Securities and Exchange Commission (SEC), a government watchdog. In a recent order, the SEC held that the group "entered into a funding scheme" to acquire control of the institution.

The order stated that the investors have misrepresented their independence from each other to acquire majority shares in The Medical City, to the prejudice of the unsuspecting stockholders whose share value and voting power have declined.

The dispute arose when the Singapore-backed group acquired a 54% stake in the hospital, prompting its former president to file legal action.