DOCSLIB.ORG

Directors' Duties & Responsibilities (Singapore)

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Directors' Duties & Responsibilities (Singapore) DIRECTORS’ DUTIES & RESPONSIBILITIES (SINGAPORE) Robson Lee Partner GIBSON, DUNN & CRUTCHER LLP One Raffles Quay #37 01 North Tower Singapore 048583 CONTENTS 1. INTRODUCTION ........................................................................................................................ 1 2. DIRECTORS’ ROLE ................................................................................................................... 1 3. DIRECTORS DEFINED .............................................................................................................. 2 3.1. Identifying the Directors of a Corporation ...................................................................... 2 3.2. Executive Directors ........................................................................................................ 3 3.3. De facto Directors .......................................................................................................... 3 3.4. Alternate or Substitute Directors ................................................................................... 4 3.5. Additional Directors ....................................................................................................... 4 3.6. Associate Directors ........................................................................................................ 4 3.7. Shadow Directors .......................................................................................................... 4 3.8. Nonexecutive Directors ................................................................................................. 5 3.9. Independent Directors ................................................................................................... 6 4. APPOINTMENT OF DIRECTORS ............................................................................................. 7 5. QUALIFICATIONS AND DISQUALIFICATIONS OF DIRECTORS ........................................... 7 5.1. Essential Qualifications (S. 145(2)) ............................................................................... 7 5.2. Share Qualifications (S. 147) ........................................................................................ 8 5.3. Disqualifications ............................................................................................................. 8 5.4. Age Limit ...................................................................................................................... 11 5.5. Articles of Association ................................................................................................. 11 5.6. Effect of Disqualification .............................................................................................. 12 5.7. Application for Leave of Court to Act as Director ........................................................ 12 6. REMUNERATION .................................................................................................................... 12 6.1. Provision and Improvement of Director’s Emoluments ............................................... 12 6.2. The Remuneration Committee .................................................................................... 12 6.3. Remuneration Package ............................................................................................... 13 6.4. Disclosure on Remuneration ....................................................................................... 13 6.5. Golden Handshakes .................................................................................................... 13 7. FIDUCIARY DUTIES OF DIRECTORS .................................................................................... 14 7.1. Introduction to Fiduciary Duties ................................................................................... 14 7.2. Duty to Act in Good Faith ............................................................................................ 15 7.3. Duty to Act in the Interests of the Company ................................................................ 15 7.4. Duty to Use Powers for the Proper Purpose ............................................................... 18 7.5. Special Problems of Nominee Directors and Directors Who Are Shareholders ......... 19 8. CONFLICTS OF INTEREST .................................................................................................... 20 8.1. Introduction to Conflicts of Interest .............................................................................. 20 8.2. Dealings Directly Between the Director and the Company ......................................... 21 8.3. Dealings Between the Company and a Third Party Associated With Its Director ....... 22 8.4. Dealings Between the Director and the Shareholders ................................................ 23 8.5. Business Opportunities of the Company ..................................................................... 23 8.6. Directors’ Right to Compete ........................................................................................ 24 8.7. Improper Use of Information ........................................................................................ 25 8.8. Steps to Avoid Incurring Personal Liability in a Conflict-of-Interest Situation ............. 26 9. SUBSTANTIAL PROPERTY TRANSACTIONS ....................................................................... 26 9.1. Disposal of the Whole of the Company’s Undertaking or Property (S. 160) ............... 26 9.2. Repealed Sections ...................................................................................................... 26 9.3. Liquidator’s Right to Recover in Certain Sales to or by the Company (S. 331) .......... 27 9.4. Disclosure of Sale to Interested Persons Under the Listing Manual ........................... 27 10. OTHER MATTERS RELATED TO FIDUCIARY DUTIES AND CONFLICT OF INTERESTS . 28 10.1. Loans to Directors ....................................................................................................... 28 10.2. Obligations to Disclose ................................................................................................ 30 10.3. Disclosure Requirements for IPOs .............................................................................. 32 10.4. Disclosure Requirements Under the SGX-ST ............................................................. 34 11. DUTY OF CARE, SKILL AND DILIGENCE .............................................................................. 35 11.1. Introduction to the Duty of Care, Skill and Diligence ................................................... 35 11.2. Contract ....................................................................................................................... 36 11.3. Fiduciary Duty .............................................................................................................. 36 11.4. The Common Law Tort of Negligence......................................................................... 36 11.5. Statute ......................................................................................................................... 36 11.6. Standard of Care and Skill .......................................................................................... 37 11.7. The Business Judgment Rule ..................................................................................... 38 12. OTHER LIABILITIES OF DIRECTORS .................................................................................... 39 12.1. Contracts by Directors Personally ............................................................................... 39 12.2. Breach of Warranty of Authority .................................................................................. 39 12.3. Contracting of Debt Without Reasonable Expectation of Repayment (S. 339(3)) and Fraudulent and Wrongful Trading (S. 340) .................................................................. 39 12.4. Payment of Dividends Other Than From Profits (S. 403) ............................................ 40 12.5. Delinquent Officers (S. 341) ........................................................................................ 40 13. EXONERATION OF DIRECTORS ........................................................................................... 40 13.1. Exemptions and Indemnities by the Company (S. 172) .............................................. 40 13.2. Insurance ..................................................................................................................... 41 13.3. Application to the Court for Relief (S. 391) .................................................................. 41 13.4. Release by the Company ............................................................................................ 41 14. SHAREHOLDER REMEDIES .................................................................................................. 42 14.1. Oppression, Disregard of Member’s Interests and Prejudice ..................................... 42 14.2. The English Approach ................................................................................................. 44 14.3. The Australian Approach ............................................................................................. 44 14.4. The Singapore Approach ............................................................................................ 44 14.5. Prerequisites for S. 216 to Operate ............................................................................. 45 14.6. Suits on Behalf
Load more

Recommended publications
  • No. 06150195 the COMPANIES ACTS 1985 TO
    No. 06150195 THE COMPANIES ACTS 1985 TO 2006 ______________________________________________ PUBLIC COMPANY LIMITED BY SHARES _______________________________________________ ARTICLES OF ASSOCIATION of Jupiter Fund Management plc (As adopted by Special Resolution passed on 17 May 2017) Contents Article No Page PRELIMINARY.........................................................................................................................................1 1 Table A and Model Articles not to apply ...................................................................................1 2 Interpretation .............................................................................................................................1 3 Limited liability...........................................................................................................................4 SHARE CAPITAL ....................................................................................................................................4 4 Deferred Shares........................................................................................................................4 5 Power to attach rights ...............................................................................................................5 6 Allotment ...................................................................................................................................5 7 Redeemable shares ..................................................................................................................6
    [Show full text]
  • The Duty of UK Company Directors to Consider Relevant ESG Factors
    The Duty of UK Company Directors to Consider Relevant ESG Factors Disclaimer This memorandum is not legal advice and should not be relied upon as such. Neither the PRI Association nor Debevoise & Plimpton, nor any of their respective agents, partners or employees, takes any responsibility for any action taken or not taken on the basis of anything contained in this memorandum. Specific legal advice should always be sought. This memorandum, which is based upon the law as at August 2019, is deliberately abbreviated and summary in nature. Unless expressly stated otherwise, the opinions, recommendations, findings, interpretations and conclusions expressed in this report are those of the various contributors to the report and do not necessarily represent the views of PRI Association or the signatories to the Principles for Responsible Investment. Any recommendations or summaries made by the PRI Association based on the content of this memorandum should not be taken to have been endorsed by Debevoise & Plimpton. Debevoise & Plimpton Debevoise & Plimpton LLP is a premier law firm with market-leading practices and a global perspective. Approximately 700 lawyers work in nine offices across three continents, within integrated global practices, serving clients around the world. The Debevoise Private Equity Group is a genuine market leader and has helped shape the industry for decades. More than 200 lawyers work within the Group in Debevoise offices around the world, making it one of the few truly global private equity practices. The team works hand-in-hand with our Business Integrity Group, designing and integrating solutions to complex corporate responsibility challenges. We work with in-house counsel, sustainability leaders and compliance departments to provide guidance on emerging integrity standards.
    [Show full text]
  • SUMMARY Introduction the Fiduciary Position of Directors to Whom Do Directors Owe T
    14 Directors’ duties <start feature> SUMMARY Introduction The fiduciary position of directors To whom do directors owe their duties? The general duties of directors: CA 2006, Part 10 Remedies Accessory liability Relief from liability <end feature> Introduction 14.1 In this chapter we consider the duties which a director owes to the company. In Chapter 13 we explained that directors are fiduciaries and so much of the case law on their duties is founded on principles originating from the law of trusts and agency. We also saw that the early part of the 20th century marked a significant shift in the way the judges viewed the office of director. In tandem with this development the courts adopted a stricter approach towards the standard of care and skill expected of directors in the performance of their management roles. A concern of both equity and common law courts was to develop a corpus of rules designed to prevent directors abusing their considerable powers. The policy objective is based on prophylaxis and the result is a formidable body of reported decisions in which the judges have been developing the contours of directors’ liabilities. In addition to the work of the courts, legislation has also imposed a range of duties, devised principally as reactive measures against specific abuses by directors, particularly in relation to fraudulent asset stripping. Confronted with this considerable body of law, it came as little surprise that the Company Law Review (CLR), in line with its objectives of maximising clarity and accessibility, recommended that the duties of directors should be codified by way of a 1 statutory restatement.
    [Show full text]
  • CCAR Journal the Reform Jewish Quarterly
    CCAR Journal The Reform Jewish Quarterly Halachah and Reform Judaism Contents FROM THE EDITOR At the Gates — ohrgJc: The Redemption of Halachah . 1 A. Brian Stoller, Guest Editor ARTICLES HALACHIC THEORY What Do We Mean When We Say, “We Are Not Halachic”? . 9 Leon A. Morris Halachah in Reform Theology from Leo Baeck to Eugene B . Borowitz: Authority, Autonomy, and Covenantal Commandments . 17 Rachel Sabath Beit-Halachmi The CCAR Responsa Committee: A History . 40 Joan S. Friedman Reform Halachah and the Claim of Authority: From Theory to Practice and Back Again . 54 Mark Washofsky Is a Reform Shulchan Aruch Possible? . 74 Alona Lisitsa An Evolving Israeli Reform Judaism: The Roles of Halachah and Civil Religion as Seen in the Writings of the Israel Movement for Progressive Judaism . 92 David Ellenson and Michael Rosen Aggadic Judaism . 113 Edwin Goldberg Spring 2020 i CONTENTS Talmudic Aggadah: Illustrations, Warnings, and Counterarguments to Halachah . 120 Amy Scheinerman Halachah for Hedgehogs: Legal Interpretivism and Reform Philosophy of Halachah . 140 Benjamin C. M. Gurin The Halachic Canon as Literature: Reading for Jewish Ideas and Values . 155 Alyssa M. Gray APPLIED HALACHAH Communal Halachic Decision-Making . 174 Erica Asch Growing More Than Vegetables: A Case Study in the Use of CCAR Responsa in Planting the Tri-Faith Community Garden . 186 Deana Sussman Berezin Yoga as a Jewish Worship Practice: Chukat Hagoyim or Spiritual Innovation? . 200 Liz P. G. Hirsch and Yael Rapport Nursing in Shul: A Halachically Informed Perspective . 208 Michal Loving Can We Say Mourner’s Kaddish in Cases of Miscarriage, Stillbirth, and Nefel? . 215 Jeremy R.
    [Show full text]
  • Directors Duties and Liabilities Under Cayman Islands Law Article
    October 2012 Company Directors: Duties and Liability in Cayman Islands Law For further information Duties and liabilities of directors of companies in the Cayman Islands are on any of the issues discussed in determined by legislation in the Companies Law (Revised) and by the this article please contact: Common Law from which precedents are established. Some of the Common Law principles are incorporated in statute and legal precedents evolve over time as new cases are tried before the Grand Court, Court of Appeal and the Privy Council. Statutory Duties of Company Directors The Companies Law (2011 Revision) lists the duties and requirements of company directors: • To maintain a register of company members with their names and addresses and in the case of a company having its capital divided Lorcan Tiernan DD: + 353 (0)1 673 1736 into shares, a statement of the shares held by each member, at the [email protected] registered office of the company in the Cayman Islands. (This provision does not apply to the register of exempted companies which can be kept at any location). • To maintain a register of directors. The Registrar of Companies shall be notified of any change in directors or officers within 30 days. Failure to comply with the notification gives rise to a penalty of CI$10 for every day during which the default continues. The penalty applies to every director and manager who knowingly and willfully authorises or permits such default. • A register of mortgages and charges over company assets must be kept at the registered office of the company.
    [Show full text]
  • Limited Liability: a Pathway for Corporate Recklessness?
    LIMITED LIABILITY: A PATHWAY FOR CORPORATE RECKLESSNESS? Igho Lordson Dabor PhD SEPTEMBER 2016 LIMITED LIABILITY: A PATHWAY FOR CORPORATE RECKLESSNESS? By Igho Lordson Dabor A thesis submitted in partial fulfilment of the requirement of the University of Wolverhampton for the degree of Doctor of Philosophy September, 2016 Faculty of Social Sciences University of Wolverhampton Law School This work or any part therefore has not previously been presented in any form to the University or any other body whether for the purposes of assessment, publication or for any other purposes (unless otherwise indicated). Save for any express acknowledgements, references and/or bibliographies cited in the work, I confirm that the intellectual content of this work is the result of my own efforts and of no other person. The right of Igho Lordson Dabor to be identified as author of this work is asserted in accordance with ss.77 and 78 of the Copyright, Design and Patents Act 1988. At this date, the author owns copyright. Signature: …………………………………………… Igho Lordson Dabor Date: …………………………………………………. Dedication DEDICATION I dedicate this work first of all to the Almighty God, creator of heaven and earth, who has been my rock, my strength, and my salvation and to my lovely wife Mrs Adefolawe Yetunde Dabor and our lovely and wonderful children Joshua Omoyode Dabor, and Esther Avwerosuoghene Dabor. Dedication i Acknowledgement ACKNOWLEDGEMENT I extend my gratitude to the almighty God who gave me the grace, and ability to complete this work. I also extend my gratitude to all in the University Of Wolverhampton Law School who provided a fantastic environment in which to work and learn.
    [Show full text]
  • Diasporas, Development and Peacemaking in the Horn of Africa Edited by Liisa Laakso and Petri Hautaniemi
    This PDF is made available under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) Licence. Further details regarding permitted usage can be found at http:// creativecommons.org/licenses/by-nc-nd/4.0/ Print and ebook editions of this work are available to purchase from Zed Books (www.zedbooks.co.uk). A frica Now Africa Now is published by Zed Books in association with the inter­ nationally respected Nordic Africa Institute. Featuring high­quality, cutting­edge research from leading academics, the series addresses the big issues confronting Africa today. Accessible but in­depth, and wide­ranging in its scope, Africa Now engages with the critical political, economic, sociological and development debates affecting the continent, shedding new light on pressing concerns. Nordic Africa Institute The Nordic Africa Institute (Nordiska Afrikainstitutet) is a centre for research, documentation and information on modern Africa. Based in Uppsala, Sweden, the Institute is dedicated to providing timely, critical and alternative research and analysis of Africa and to co­operation with African researchers. As a hub and a meeting place for a growing field of research and analysis, the Institute strives to put knowledge of African issues within reach of scholars, policy makers, politicians, media, students and the general public. The Institute is financed jointly by the Nordic countries (Denmark, Finland, Iceland, Norway and Sweden). www.nai.uu.se Forthcoming titles Margaret C. Lee (ed.), Africa’s World Trade Godwin Murunga, Duncan Okello and Anders Sjögren (eds), Kenya: The Struggle for a New Constitutional Order Thiven Reddy, South Africa: Beyond Apartheid and Liberal Democracy Lisa Åkesson and Maria Eriksson Baaz (eds), Africa’s Return Migrants Titles already published Fantu Cheru and Cyril Obi (eds), The Rise of China and India in Africa Ilda Lindell (ed.), Africa’s Informal Workers Iman Hashim and Dorte Thorsen, Child Migration in Africa Prosper B.
    [Show full text]
  • The Multifaceted Commodification Processes and Transformations of Pastoralists in Lowland Ethiopia
    The Multifaceted Commodification Processes and Transformations of Pastoralists in Lowland Ethiopia by Olivia Pearson A Cumulative Dissertation in Geography Faculty of Applied Computer Sciences University of Augsburg Germany June 2017 First Referee (Supervisor): Prof. Dr. Matthias Schmidt Second Referee: apl. Prof. Dr. Karin Thieme Date of oral examination: 05/10/2017 i The Multifaceted Commodification Processes and Transformations of Pastoralists in Lowland Ethiopia Vorgelegt von Olivia Pearson Kumulative Dissertation Fachgebiet: Geographie Fakultät für Angewandte Informatik der Universität Augsburg Deutschland Juni, 2017 Erstgutachter (Betreuer): Prof. Dr. Matthias Schmidt Zweitgutachterin: apl. Prof. Dr. Karin Thieme Datum der mündlichen Prüfung: 05.10.2017 Page | ii TABLE OF CONTENTS Table of Contents .............................................................................................................. i List of Figures .......................................................................................................................... iii List of Tables ........................................................................................................................... iii Acronyms and Glossary ........................................................................................................... iv Acknowledgements .................................................................................................................. v Executive Summary ...............................................................................................................
    [Show full text]
  • Addis Ababa University School of Graduate Studies School Of
    ADDIS ABABA UNIVERSITY SCHOOL OF GRADUATE STUDIES SCHOOL OF LAW APPLICABILITY OF THE DOCTRINE OF ULTRA VIRES ON PRIVATE COMMERCIAL COMPANIES IN ETHIOPIA: ITS LEGAL SIGNIFICANCE BY: WONDEWOSEN EWUNIE DESALE MAY 2020 ADDIS ABABA ADDIS ABABA UNIVERSITY SCHOOL OF GRADUATE STUDIES SCHOOL OF LAW APPLICABILITY OF THE DOCTRINE OF ULTRA VIRES ON PRIVATE COMMERCIAL COMPANIES IN ETHIOPIA: ITS LEGAL SIGNIFICANCE BY: WONDEWOSEN EWUNIE DESALE ADVISOR: ZEKARIAS KENEAA (ASSOCIATE PROFESSOR) A THESIS SUBMITTED IN PARTIAL FULFILLMENT FOR THE REQUIREMENT OF MASTER’S DEGREE IN BUSINESS LAW (L.L.M) MAY 2020 ADDIS ABABA Approval Sheet Title of Thesis: APPLICABILITY OF THE DOCTRINE OF ULTRA VIRES ON PRIVATE COMMERCIAL COMPANIES IN ETHIOPIA: ITS LEGAL SIGNIFICANCE BY: WONDEWOSEN EWUNIE DESALE Board of Examiners: Signature Date 1. Tadesse Lencho (PhD, Asst. Prof.) _____________ June 10 2020 2. Solomon Abay (PhD, Assoc. Prof) June 10 2020 Declaration I, the undersigned, hereby declare that this thesis is my original work and has never been presented for a degree in any other university. To the best of my knowledge and belief, I also declare that all sources of materials used in the thesis have been dully acknowledged. Declared By: Name: Wondewosen Ewunie Desale Signature: ___________________ Date: ___________________ Confirmed By: Name: Zekarias keneaa (Associate professor) Signature: __________________ Date: ________________ Dedication To my mother, Mulu Ayalew, who has suffered much in nurturing me and is always solicitude of her son’s success and to my stepmother, Ayal Demberu, who thought me the wisdom of patience and devoted a lot to see me educated and succeeded. i Acknowledgement First of all, praise and thanks be to the Almighty God, the compassionate, the almighty Merciful, who kindly helped me to complete my study.
    [Show full text]
  • J. David Bleich SURVEY of RECENT HALAKHIC
    J. David Bleich SURVEY OF RECENT HALAKHIC LITERATURE VALIDITY OF DNA EVIDENCE FOR HALAKHIC PURPOSES (PART 2): AGUNAH Evidentiary Standards ewish law posits two fundamental principles regarding marriage: (1) A woman lacks capacity to contract a polyandrous marriage; (2) a J marriage can be terminated, and the wife’s capacity to contract a new marriage restored, only upon death of her husband or divorce. A woman known to have been married retains the status of a married woman until there is halakhically cognizable evidence of termination of the mar- riage. Agonizing situations of igun arise in which a woman is “chained” in a marriage in the sense that she is the bereft of the privileges and the prerogatives of marriage but is not free to seek another consort. The most tragic cases of igun are those in which the husband is presumed to be dead but there is no satisfactory proof that death has actually occurred. The wife is left an agunah, i.e., “a chained woman,” ensnared by marital bonds but bereft of consortium with her partner. The problem became the focus of renewed attention in the aftermath of the destruction of the Twin Towers of the World Trade Center on September 11, 2001, in which a large number of bodies were incinerated or were no longer identifi able. Ostensibly, biblical law would apply the two-witness rule and permit remarriage only on the basis of the testimony of two qualifi ed witnesses who testify to personal knowledge of the husband’s death. In practice, rabbinic enactments sanction remarriage upon the testimony of a single witness, hearsay testimony or some limited forms of circumstantial evi- dence.
    [Show full text]
  • International Company and Commercial Law Review Why Kenya Should Reconsider Its Ultra Vires Doctrine in Corporate
    Page1 International Company and Commercial Law Review 2010 Why Kenya should reconsider its ultra vires doctrine in corporate law Lois M. Musikali Subject: Company law Keywords: Kenya; Objects clauses; Special resolutions; Ultra vires Legislation: Companies Act 1948 (Kenya) s.5, s.8 *I.C.C.L.R. 301 Introduction The ultra vires1 doctrine in company law, namely that a company is formed only to pursue the objects specified in its memorandum of association and if it acts outside those objects the transaction is ultra vires and void,2 has for a long time been one of the more intractable problems facing persons dealing with companies in common law jurisdictions.3 Under the ultra vires doctrine, companies could avoid liability under contracts with innocent third parties on the ground that the company never had the power to enter into the said contracts in the first place. A significant number of common law jurisdictions, including Australia, Canada, New Zealand and Hong Kong, and most recently England, have taken steps to abolish the doctrine of ultra vires. This article considers the provisions of Kenya's Companies Act (the Act)4 that provide for the doctrines of ultra vires and why there is need to review them. The discussion within this article is limited to the ultra vires doctrine as it relates to the objects clause and not to the general breach of directors duties in public listed companies. The present law and its purpose Section 5(1)(c) of the Act requires the memorandum of every company to state, inter alia, the objects of the company.
    [Show full text]
  • Directors' Duties and Responsibilities in Singapore (February 2021)
    1.1. CONTENTS 1. INTRODUCTION ....................................................................................................................... 1 2. DIRECTORS’ ROLE .................................................................................................................. 1 3. DIRECTORS DEFINED ............................................................................................................. 2 3.1. Identifying the Directors of a Corporation ..................................................................... 2 3.2. Executive Directors ....................................................................................................... 2 3.3. De facto Directors ......................................................................................................... 3 3.4. Alternate or Substitute Directors ................................................................................... 4 3.5. Additional Directors ....................................................................................................... 4 3.6. Associate Directors ....................................................................................................... 4 3.7. Shadow Directors ......................................................................................................... 4 3.8. Non-executive Directors ............................................................................................... 5 3.9. Independent Directors .................................................................................................
    [Show full text]