'Professor Lim's Book Is an Impressive Contribution to an Important Corporate Governance Debate Regarding the Role of Shareh

Cambridge University Press 978-1-108-42658-9 — A Case for Shareholders' Fiduciary Duties in Common Law Asia Ernest Lim Frontmatter More Information

‘Professor Lim’s book is an impressive contribution to an important corporate governance debate regarding the role of shareholders. By combining excellent doctrinal, empirical, and policy focused research, he argues for a reconceptualisation of the role of shareholders in listed companies, including the imposition of fiduciary duties on these shareholders. The book primarily focuses on listed companies in Hong Kong, Singapore, India, and Malaysia but is undoubtedly of broad international significance. Many will benefit from reading this insightful and thought- provoking book.’ Ian Ramsay, Harold Ford Professor of Commercial Law and Redmond Barry Distinguished Professor, Melbourne Law School, University of Melbourne ‘This book makes a trenchant and compelling case for imposing legal responsibility on corporate shareholders in the four Asian common law jurisdictions, drawing assuredly on jurisprudence, doctrine, best practice, and actual practice. With insight, skill, and erudition, the author makes the strongest case yet for root-and-branch revision of the Anglo-Saxon approach to the rights and duties of corporate participants. This is essential reading for anyone seriously interested in corporate governance, whether in common law Asia or anywhere in the world.’ William W. Bratton, Nicholas F. Gallicchio Professor of Law and Co-Director, Institute for Law & Economics, University of Pennsylvania Law School ‘Controlling shareholders are the norm for most of the world’s companies. There are a wide range of mechanisms by which such controllers can influence corporate activities to their own benefit and to the detriment of minority shareholders. In this important book, Ernest Lim presents cogent arguments for a reassessment of the position in Asian company laws under which controllers are generally not subject to fiduciary duties. The author also makes a case for institutional shareholders to be subject to fiduciary duties because of conflicts of interest between them and the company. This book will challenge readers to rethink the function of corporate governance.’ John Armour, Hogan Lovells Professor of Law and Finance, University of Oxford and Fellow of the British Academy and European Corporate Governance Institute

© in this web service Cambridge University Press www.cambridge.org Cambridge University Press 978-1-108-42658-9 — A Case for Shareholders' Fiduciary Duties in Common Law Asia Ernest Lim Frontmatter More Information

‘This book makes a major contribution to contemporary debate about the role of shareholders (both institutional and controlling shareholders) and to comparative corporate governance generally. It reconceptualises shareholders and advances the “provocative thesis” that, in common law Asia, shareholders should be subject to fiduciary duties. The book will be of interest to corporate law scholars and practitioners, and to anyone seeking to understand the growing legal and economic significance of East Asia.’ Jennifer Hill, Professor of Corporate Law, University of Sydney ‘A central thesis of this impressive work is that a company’s members in general meeting, as well as its board of directors, are agents of the company, and as such are subject to fiduciary obligations. This book will be valuable to those who research and advise on not only company law, corporate governance, and Asian jurisdictions, but also equity and common law more generally.’ Robert Walker, Lord Walker of Gestingthorpe, Former Justice of the United Kingdom Supreme Court and Non-Permanent Judge, Hong Kong Court of Final Appeal

A CASE FOR SHAREHOLDERS’ FIDUCIARY DUTIES IN COMMON LAW ASIA

This book reconceptualises the role of the general meeting and shareholders in the listed companies in four leading common law jurisdictions in Asia (Singapore, Hong Kong, India and Malaysia) as one that should include fiduciary duties. It demonstrates why, when, by whom and how fiduciary duties should be imposed and how they could be enforced. In so doing, it refutes the long-standing common law rule that shareholders can generally vote as they please. It advances the debate on a central notion of corporate law, namely, the interests of the company. It addresses the deficiencies in the law regulating conflicts of interest involving controlling shareholders and institutional shareholders, and provides solutions to the problem of activist and passive minority institutional investors. This book challenges us to rethink the meaning and implementation of the long-term success of the company and shows how corporate governance should and could be made.

ernest lim is an associate professor at the Faculty of Law, National University of Singapore (NUS). His main research interest is comparative corporate law and governance. He is also interested in private law and its relationship with public law, as well as legal aspects of artiﬁcial intelligence. He has held visiting appointments at Columbia University, Max Planck Institute, University of Oxford and Tel Aviv University. A graduate of the University of Oxford (DPhil and BCL), Harvard Law School (LLM) and NUS (LLB), he practised corporate law in New York and Hong Kong prior to entering academia. He is the author of Sustainability and Corporate Mechanisms in Asia (Cambridge University Press, forthcoming).

international corporate law and ﬁnancial market regulation

Corporate law and ﬁnancial market regulation have major implications for how the modern economy is organised and regulated and for how risk is managed and distributed – domestically, regionally and internationally. This Series seeks to inform and lead the vibrant scholarly and policy debate in this highly dynamic area by publishing cutting-edge, timely and critical examinations of the most pressing and important questions in the ﬁeld. Series Editors Professor Eilis Ferran, University of Cambridge

Professor Niamh Moloney, London School of Economics and Political Science

Professor Howell Jackson, Harvard Law School

ACASEFOR SHAREHOLDERS’ FIDUCIARY DUTIES IN COMMON LAW ASIA

ERNEST LIM National University of Singapore

University Printing House, Cambridge CB2 8BS, United Kingdom One Liberty Plaza, 20th Floor, New York, NY 10006, USA 477 Williamstown Road, Port Melbourne, VIC 3207, Australia 314–321, 3rd Floor, Plot 3, Splendor Forum, Jasola District Centre, New Delhi – 110025, India 79 Anson Road, #06–04/06, Singapore 079906

Cambridge University Press is part of the University of Cambridge. It furthers the University’s mission by disseminating knowledge in the pursuit of education, learning, and research at the highest international levels of excellence.

www.cambridge.org Information on this title: www.cambridge.org/9781108426589 DOI: 10.1017/9781108629065 © Ernest Lim 2019 This publication is in copyright. Subject to statutory exception and to the provisions of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press. First published 2019 Printed and bound in Great Britain by Clays Ltd, Elcograf S.p.A. A catalogue record for this publication is available from the British Library. Library of Congress Cataloging-in-Publication Data Names: Lim, Ernest. 1977– author. Title: A case for shareholders’ fiduciary duties in common law Asia / Ernest Lim, National University of Singapore. Description: Cambridge, United Kingdom; New York, NY, USA: Cambridge University Press, 2019. | Series: International corporate law and financial market regulation | Includes bibliographical references and index. Identifiers: LCCN 2019001097 | ISBN 9781108426589 (hardback) Subjects: LCSH: Stockholders – Legal status, laws, etc. – China – Hong Kong. | Stockholders – Legal status, laws, etc. – India. | Stockholders – Legal status, laws, etc. – Malaysia. | Stockholders – Legal status, laws, etc. – Singapore. | BISAC: LAW / Corporate. Classification: LCC KNC319 .L56 2019 | DDC 346.5/0666–dc23 LC record available at https://lccn.loc.gov/2019001097 ISBN 978-1-108-42658-9 Hardback Cambridge University Press has no responsibility for the persistence or accuracy of URLs for external or third-party internet websites referred to in this publication and does not guarantee that any content on such websites is, or will remain, accurate or appropriate.

for Mom and Domin

CONTENTS

List of Figures page xi List of Tables xii Acknowledgements xiii List of Cases xiv List of Legislation and Regulations xxiii List of Abbreviations xxv

PART I Introduction and Overview 1 1 Introduction 3 2 Common Law Jurisdictions in Asia: An Overview 38 PART II Role of General Meeting and Shareholders 97 3 Powers, Shareholders and Justiﬁcations for Duties 99 3A Formal and Informal Power: Voting and Inﬂuence 99 3B Agency and the Interests of the Company 137 3C Controlling Shareholders 205 3D Institutional Shareholders 273 3E Comparative Law 318 3F Conclusion 329 4 Objections 333 4A Doctrinal Objections 333 4B Policy Objections 333

x contents

PART III The Mechanics of Imposing Duties 371 5 ‘What’, ‘Whom’, ‘When’, ‘Who’ and ‘How’ 373 5A What Should the Duties Be? 373 5B To Whom Should the Duties Be Owed? 373 5C When Should the Duties Be Imposed? 373 5D Who Should Impose the Duties? 373 5E How Could the Duties Be Imposed? 373 PART IV Enforcement 423 6 Enforcement 425 6A Private Enforcement 425 6B Public Enforcement 425 6C Special Issues 425 PART V Conclusion 473 7 Concluding Remarks 475

Appendixes Appendix 1 Shareholders’ Powers Table 481 Appendix 2 List of the Top Thirty Listed Companies in Hong Kong, Singapore, India and Malaysia 493 Appendix 3 Materials Collected from the Top Thirty Listed Companies 497 Appendix 4 Classiﬁcation of the Top Thirty Listed Companies Based on Company’s Purpose 510 Appendix 5 Top Five Shareholders in the Top Thirty Listed Companies 517 Appendix 6 Stewardship Codes of UK, Hong Kong, Singapore and Malaysia 546 Appendix 7 Controlling Shareholders of Malaysian Government-Linked Companies 550 Bibliography 553 Index 593

FIGURES

4.1 Classification of the Sample of Companies Studied Based on Company’s Purpose page 510 4.2 Classification of the Sample of Hong Kong Companies Studied Based on Company’s Purpose 513 4.3 Classification of the Sample of Singapore Companies Studied Based on Company’s Purpose 514 4.4 Classification of the Sample of India Companies Studied Based on Company’s Purpose 515 4.5 Classification of the Sample of Malaysia Companies Studied Based on Company’s Purpose 516

TABLES

2.1 Country distribution and summary statistics page 68 3.1 Corporate purpose (shareholder primacy and stakeholder value) 198 3.2 Corporate purpose (others) 198 3.3 Techniques for regulating RPTs 218

xii

ACKNOWLEDGEMENTS

I am immensely grateful to John Armour, William Bratton, Iris Chiu, Jacques deLisle, Lawrence Friedman, Gillian Hadﬁeld, Christopher Hare, Lusina Ho, John Lowry and Jennifer Payne for their insightful and incisive comments, as well as to Michael Bridge, Cora Chan, Gary Chan, Johannes Chan, Jonathan Chan, Kate Chan, Peter Chau, Serene Chee, Jianlin Chen, Thomas Cheng, Simon Chesterman, Paul Davies, Rainbow Fu, Anne Goh, Jennifer Hill, Hock Lai Ho, Michael Hor, Sunny Hor, Eric Ip, Ho Yan Lam, Luh Luh Lan, Wan Ying Lau, Domin Lee, Edmund Lee, Hsiang Hui Lee, Carmen Leung, Boon Choon Lim, Edmund Lim, Edwin Lim, Ke Jia Lim, Michael Lim, Jolene Lin, Chi Lok Lui, Joe Ng, Jonathan Ng, Richard Nolan, Dan Puchniak, Ian Ramsay, Anselmo Reyes, Francis Reynolds, Kinnari Sahita, Andrew Simester, Sandy Steel, Cheng Han Tan, Zhong Xing Tan, Marcus Teo, Hans Tjio, Alison Tsang, Francisco Urbina, Umakanth Varottil, Robert Walker, Marco Wan, Wai Yee Wan and Sing Wei Wong for their invaluable advice, encouragement and support. I deeply appreciate the rigorous review and unanimous approval by the seven referees, comprising four anonymous CUP readers and the three CUP series editors (Eilis Ferran, Niamh Moloney and Howell Jackson). In particular, I am indebted to the four anonymous readers who engaged in the analysis of this book in such a thoughtful and careful manner and who provided me with very constructive and detailed comments. Finally, I would like to thank the participants and staff at Columbia Law School, Max Planck Institute for Comparative and International Private Law, Stanford Law School and the University of Oxford where I presented or wrote parts of this book. The support of NUS Law SUG grant (R241000159133) is acknowledged. I have endeavoured to state the law as of 1 October 2018.

xiii

CASES

Australia Bell Group v. Westpac Banking Corp (No 9) (2008) WASC 239 157 Chan v. Zacharia [1984] 154 CLR 178 378 Charlton v. Baber (2003) 47 ACSR 31 437 Fitzsimmons v. The Queen (1997) 23 ACSR 355 377 Forge v. Australian Securities and Investments Commission (2004) 213 ALR 574 380, 418 Hospital Products Ltd v. United States Surgical Corporation (1984) 156 CLR 41 32, 154, 390, 413, 416 Kinsela v. Russell Kinsela Pty Ltd (1986) 4 ACLC 215 262, 408 Northside Developments Pty Ltd v. Registrar-General (1990) 170 CLR 146 150 Permanent Building Society (in liq) v. McGee (1993) 11 ACSR 260 32 Thorby v. Goldberg (1964) 112 CLR 597 378 Canada Frame v. Smith [1987] 2 SCR 99 154, 390, 413 Guerin v. Canada [1984] 2 SCR 33 413 Hodgkinson v. Simms [1994] 3 SCR 377 154, 413 Lac Minerals Ltd v. International Corona Resources Ltd [1989] 2 SCR 574 413 Germany BGH NJW 198 326 BGHZ 103 326 BGHZ 76 326 Girmes, In Re (1995) BGHZ 129 327 Hong Kong Able Success Asia v. China Packaging Group Company Limited [2014] HKCU 1316 451 Akai Holdings Ltd v. Kasikorn Bank Pcl [2010] 3 HKC 153 375, 376 Bondwood Development Ltd, Re [1990] 1 HKLR 200 445, 446, 447 Centaline Property Agency Ltd v. Lai Yuk Chun [2001] HKCFI 1292; [2002] 2 HKLRD 241; HCA 18369/1999 (7 December 2001) 416 Chime Corp Ltd, Re [2004] 3 HKLRD 922 444, 445 China Shanshui Cement Group Ltd v. Zhang Caikui [2016] HKEC 116 256 Chintung Futures Ltd v. Arthur Lai Cheuk Kwan [1994] 1 HKLR 95 408

xiv

list of cases xv

Excel Courage Holdings Ltd v. Wong Sin Lai [2016] HKEC 453 157 Hiew Fook Siong v. Fung Tak Keung [2006] 3 HKLRD 762 8 Hong Jing Co Ltd v. Zhuhai Kwok Yuen Investment Co Ltd [2012] HKCA 296; [2013] 1 HKLRD 441; CACV 63/2011 (17 July 2012) 416, 417 Hong Kong Kam Lan Koon Ltd v. Realray Investment Ltd [2004] 2 HKC 673 439 Hong Kong Zhongxing Group Company v. Grand Field Group Holdings [2014] HKCU 2729 440 Hua Tian Long (No. 3) [2010] 3 HKC 557 462 Ka Ka Realty Ltd, Re [2004] 1 HKLRD 832 449 Kao Lee & Yip v. Koo Hoi Yan Donald [2003] 3 HKLRD 296 378 Kishimoto Sangyo Co Ltd v. Oba [1996] 2 HKC 260 265 Luck Continent Ltd v. Cheng Chee Tock Theodore [2012] HKEC 567 468 Luck Continent Ltd v. Cheng Chee Tock Theodore [2013] 4 HKLRD 181 254, 446, 447, 451 Lucky Money Ltd, Re (unreported HCMP 05/2006, [2006] HKEC 1379) 438 Mediavision Ltd, Re [1993] 2 HKC 629 446 Moulin Global Eyecare Holdings Ltd v. Lee Sin Mei Olivia [2009] 3 HKLRD 265 247, 411 Moulin Global Eyecare Holdings Ltd v. Lee Sin Mei Olivia [2010] 2 HKLRD 1096 247, 411 Moulin Global Eyecare Trading Ltd v. Commissioner of Inland Revenue [2014] HKCFA 22; [2014] HKEC 419 149 Passport Special Opportunities Master Fund LP v. Esun Holdings Ltd [2011] 4 HKC 62 77, 451 Playmates Investments Ltd, Re [1996] 4 HKC 577 445, 447 Sunlink International Holdings Ltd v. Wong Shu Wing [2010] HKEC 1700 14 Styland Holdings Ltd (No 2), Re [2012] 2 HKLRD 325 468 Tai Lap Investment Co Ltd, Re [1999] 1 HKLRD 384 445, 447, 449 Tam Lai King v. Incorporated Owners of Malahon Apartments [2010] 5 HKLRD 63 435 Thanakharn Kasikorn Thai Chamkat (Mahachon) v. Akai Holdings Ltd (2010) 13 HKCFAR 479 375 TNB Fuel Services Sdn Bhd v. China National Coal Group Corp [2017] HKEC 1184 462 Veron International v. RCG Holdings [2015] HKCFI 1246 (unreported) 440 Waddington Ltd v. Chan Chun Hoo (2008) 11 HKCFAR 370 433, 434 Waddington Ltd v. Chan Chun Hoo [2006] 2 HKLRD 896 435 Waddington Ltd v. Chan Chun Hoo Thomas [2013] HKEC 2013 440 Wong Man Yin v. Ricacorp Properties Ltd (2003) 6 HKFAR 265 254 World One Investments Ltd v. Chow Cheuk Lap [2013] HKLD 701 435 Yu Yuchuan v. China Shanshui Investment Co Ltd [2015] HKEC 437 440, 451 India Bakemans Industries Pvt. Ltd. v. New Cawnpore Flour Mills AIR 2008 SC 2699 408 Balasaraswathi Limited Tirunelveli v. A. Parameswara Aiyar AIR 1957 MAD 122 12

xvi list of cases

Bhalchandra Dharmajee v. Alcock Ashdown and Co Ltd 1972 42 Comp Cas 190 459 Central Government v. Kopran Ltd (2005) 125 Comp Cas 495; (2004) 56 SCL 428 449 Cyrus Investment Private Limited and another v. Tata Sons Limited and others (2017) Indlaw NCLAT 19 151 Dale and Carrington Invt. P. Ltd. v. P.K. Prathapan AIR 2005 SC 1624; (2004) Indlaw SC 732 157, 375, 378 Descon Limited v. Biman Behari Sen and others (No. 2) [2011] 162 Comp Cas 631 12 Dr. Joginder Singh Juneja and another v. State of Gujarat and another (2017) Indlaw GUJ 1215 247, 384, 411 Drangdhuran Hydro Power Consortium v. Chenab Valley Power Projects Private Limited (2017) Indlaw JK 808 466 G. Rama Mohan Rao v. Government of Andhra Pradesh (2017) Indlaw HYD 562 466 Ghaziabad Development Authority v. Balbir Singh AIR 2004 SC 2141 466 Kishore Kundan Sippy and Another v. Samrat Shipping and Transport Systems P. Limited and Others (2003) Indlaw CLB 7 265 M/s. Needle Industries (India) Ltd. v. Needle Industries Newey (India) Holding Ltd. [1981] 3 SCC 333 (1981) Indlaw SC 403 375 Morgan Ventures Limited v. Blue Coast Hotels and Resorts Limited [2010] 155 Comp Cas 431 254, 451 N.V.R Nagappa Chettiar v. Madras Race Club (1949) 19 Comp Cas 175 433, 434 Nagendra Rao Case In N. Nagendra Rao & Co. v. State of A.P. AIR 1994 SC 2663 466 Northern Projects Limited v. Blue Coast Hotels and Resorts Limited (2007) Indlaw CLB 7 440 Rangachari v. Bharat Sanchar Nigam Limited (2007) Indlaw SC 1076 145 Shanti Prasad Jain v. Kalinga Tubes Ltd (1965) 35 Com Cases 351 449 Starlite Spintech Limited v. Dijaya-malind Properties (India) Private Limited C.P.No. 81 of 2011 (TP.No. 60/HDB/2016) 375 Union of India (UOI) v. Satyam Computer Services Ltd [2009] 148 Comp Cas 252 254, 451 Malaysia Abdul Rahim bin Aki v. Krubong Industrial Park (Melaka) Sdn Bhd [1995] 3 MLJ 417 433 Air Cool Window Tinting Film (M) Sdn Bhd v. Lim Chien Wah & Air Cool Auto Marketing (Civil Suit NoD-22NCC-1249-2010) 445, 447 Amer Singh Bhatt v. Kelana Resorts Sdn Bhd [2007] AMEJ 0005 151 Arab-Malaysian Merchant Bank Bhd v. Silver Concept Sdn Bhd [2005] 5 AMR 381 416 Balakrishnan Vairavapillai v. Pantai Holdings Bhd (2005) MSCLC 92 449 Celcom (M) Bhd v. Mohd Shuaib Ishak [2011] 3 MLJ 636 437

list of cases xvii

Cepatwawasan Group Bhd & Anor v. Tengku Dato’ Kamal Ibni Sultan Sir Abu Bakar [2008] 2 AMR 504 247, 411 Dato’ Low Tuck Choy v. Datuk Lye Ek Seang [2016] AMEJ 0671 440 Gurbachan Singh Bagawan Singh v. Vellasamy Pennusamy [2015] 1 MLRA 107 417 Kang Choon Leu @ Kang Chee Sim v. Wintoni Group Berhad [2016] AMEJ 1264 254, 451 Minister of Finance (Government of Sabah) v. Petrojasa Sdb Bhd [2008] 5 CLJ 305 465 Owen Sim Liang Khui v. Piasau Jaya Sdn Bhd [1996] 1 MLJ 113 445 Palmco Holding Bhd v. Sakapp Commodities (M) Sdn Bhd [1988] 2 MLJ 624 439 Peringkat Istimewa Sdn. Bhd. v. Pua Kim An [2016] AMEJ 2279 145 Petra Perdana Bhd v. Tengku Dato Ibrahim Petra [2014] 11 MLJ 1 376 Pharmmalaysia Berhad (In Receivership) v. Dinesh Kumar a/l Jashbhai Nagjibha Patel [2004] 6 AMR 661 265 Pioneer Haven Sdn Bhd v. Ho Hup Construction Company Berhad [2012] 3 AMR 297; [2012] 3 MLJ 616 180, 181, 375, 376 Re Khong Thai Sawmill (Miri) Sdn Bhd [1978] 2 MLJ 227 445 Seri Anwar bin Ibrahim v. Pendakwa Raya [2014] 3 AMR 209 417 Tan Sri Halim Saad v. Tan Sri Nor Mohamed Yakcop [2014] 1 AMCR 978 464 Tengku Abdullah Ibni Sultan Abu Bakar v. Mohd Latiff Bin Shah Mohd [1996] 2 MLJ 265 378 Teoh Peng Phe v. Wan [2001] 1 AMR 358 12 TR Usah ak Lutong v. Lembaga Tabung Haji [2013] 4 MLJ 578 464 Zaharen bin Haji Zakaria v. Redmax Sdn Bhd [2016] 2 AMCR 785 157 New Zealand Chirnside v. Fay [2006] NZSC 68 412 Singapore Ang Thiam Swee v. Low Hian Chor [2013] 2 SLR 340 437 Chua Swee Keng v. E3 Holdings [2015] SGHC 22 440 ERA Realty Network Pte Ltd v. Puspha Rajaram Lakhiani [1998] 2 SLR(R) 721 417 Ezion Holding Ltd v. Teras Cargo Transport Pte Ltd [2016] SGHC 175 451 Fong Wai Lyn Carolyn v. Antitrust (Singapore) Pte Ltd [2011] 3 SLR 980 442 Gabriel Peter & Partners v. Wee Chong Jin (1998) MSCLC 96719 151 Ho Kang Peng v. Scintronix Corp Ltd [2014] 3 SLR 329 375, 376 Intraco Ltd v. Multi–Pak Singapore Pte Ltd [1995] 1 SLR 313 181 Lee v. TYC Investment Pte Ltd [2015] SGCA 40 258 Lim Cheng Huat Raymond v. Teoh Siang Teik [1996] 3 SLR(R) 371 449 Lim Swee Khiang v. Borden Co (Pte) Ltd [2006] 4 SLR(R) 745 254, 445, 446 Liquidators of Progen Engineering Pte Ltd v. Progen Holdings Ltd [2010] 4 SLR 1089 408 Low Peng Boon v. Low Janie [1999] 1 SLR 761; [1999] 1 SLR(R) 337 252, 445, 447 Mona Computer Systems (S) Pte Ltd v. Singaravelu Murugan [2013] SGCA 63 378 Ng Kek Wee v. Sim City Technology Ltd [2014] 4 SLR 723 444

xviii list of cases

Ng Sing King v. PSA International Pte Ltd [2005] SGHC 5 253 Over & Over Ltd. v. Bonvests Holdings Ltd [2010] 2 SLR 776 253, 445, 451 Oversea-Chinese Banking Corp Ltd v. Justlogin Pte Ltd [2004] SGCA 20 384 Pang Yong Hock v. PKS Contracts Services Pte Ltd [2004] 3 SLR(R) 1 437 Raffles Town Club Pte Ltd v. Lim Eng Hock Peter [2010] SGHC 163 177, 178 Raffles Town Club Pte Ltd v. Lim Eng Hock Peter [2013] 1 SLR 374 12, 407 Re Gee Hoe Chan Trading Co Pte Ltd [1991] 2 SLR(R) 114 445, 447 Re Tri-Circle Investment Pte Ltd [1993] 2 SLR 523 449 Susilawati v. American Express Bank Ltd [2009] 2 SLR(R) 737 416, 417 Swiss Butchery Pte Ltd v. Huber Ernst [2010] 3 SLR 813 265 Tai Kam San & Anor v. Lim Cher Kia (2001) MSCLC 97402 146 Tan Chin Seng v. Raffles Town Club Pte Ltd [2002] SGHC 278 439 Tan Hup Thye v. Refco (Singapore) Pte Ltd (in members’ voluntary liquidation) (2010) MSCLC 99 157 The Wellness Group v. OSIM [2016] SGHC 64 451 Ting Sing Ning v. Ting Chek Swee [2008] 1 SLR(R) 197 433, 434, 435 Tong Tien See Construction Pte Ltd (in liquidation) v. Tong Tien See [2001] 3 SLR(R) 887 247, 411 Urs Meisterhans v. GIP Pte Ltd [2011] 1 SLR 552 442 United Kingdom A and BC Chewing Gum Ltd, Re [1975] 1 WLR 579 446 Aberdeen Railway Company v. Blaikie Brothers (1854) 1 Macq 461 145, 378 Allen v. Gold Reefs of West Africa Ltd [1900] 1 Ch 656 14, 40, 250, 251, 256, 257, 342 Allmark v. Burnham [2006] 2 BCLC 437 445, 446 Arklow Investments Ltd v. Maclean [2000] 1 WLR 594 390, 415 Armitage v. Nurse [1998] Ch 241 380, 417, 418 Assénagon Asset Management SA v. Irish Bank Resolution Corp Ltd (formerly Anglo Irish Bank Corp Ltd) [2012] EWHC 2090 395 Astec (BSR) plc, Re [1998] BCLC 556; [1999] BCC 59 446, 448 Atwool v. Merryweather (1867) LR 5 Eq 464 143, 408, 434 Automatic Self-Cleansing Filter Syndicate Co Ltd v. Cuninghame [1906] 2 Ch 34 11, 39, 113, 146 Bamford v. Bamford [1970] Ch 212 11, 39 Baumler (UK) Ltd, Re, Gerrard v. Koby [2005] 1 BCLC 92 445, 446 Belfast Corporation v. OD Cars Ltd [1960] AC 490 335 Bird Precision Bellows Ltd, Re [1985] BCLC 493 451 Blackwood Hodge plc, Re [1997] 2 BCLC 650 448 Bligh v. Brent (1837) 2 Y & C 268 108 Boardman v. Phipps [1967] 2 AC 46 154, 378 Brady v. Brady (1988) 3 BCC 535 [1988] BCLC 20 7, 158, 176 Bratton Seymour Service Co Ltd v. Oxborough [1992] BCLC 693 418 Bray v. Ford [1896] AC 44 267, 378 Bristol and West Building Society v. Mothew [1998] Ch 1 31, 154, 355, 415

list of cases xix

British America Nickel Corpn Ltd v. O’Brien [1927] AC 369 14, 41 Burland v. Earle [1902] AC 83 (PC) 8, 41, 103, 143, 334, 336, 337, 408, 409, 434 Charnley Davies Ltd (No 2), Re [1990] BCLC 760 445 Charterbridge Corporation Ltd v. Lloyds Bank Ltd [1970] Ch 62 376, 377 Citco Banking Corporation NV v. Pusser’s Limited [2007] UKPC 13; [2007] BCC 205 (PC) 250 Citibank NA v. QVT Financial LP [2007] EWCA 11 417 Citizen’s Life Assurance Company Limited v. Brown [1904] AC 423 145 Clemens v. Clemens Bros Ltd [1976] 2 All ER 268 (Ch) 156 Cohen v. Selby [2001] BCLC 176 159 Colin Gwyer v. London Wharf (Limehouse) Ltd [2002] EWHC 2748 (Ch); 2 BCLC 153 31 Company, Re a (No. 001761 of 1986) [1987] BCLC 141 449 Company, Re a (No. 005134 of 1986), ex p Harries [1989] BCLC 383 445 Company, Re a (No. 005685 of 1988), ex parte Schwarcz (No 2) [1989] BCLC 427 448 Company, Re a (No. 00789 of 1987) ex p Shooter [1990] BCLC 384 446, 447 Continental Assurance Co of London plc, Re [2007] 2 BCLC 287 159 Coomber, Re [1911] 1 Ch 723 154 Cook v. Deeks [1916] 1 AC 554 143, 408, 434 Coroin Ltd (No 2), Re [2013] 2 BCLC 583 448, 450 Cowan v. Scargill [1985] Ch 270 359 Dafen Tinplate Co Ltd v. Llanelly Steel Co (1907) Ltd [1920] 2 Ch 124 156 Denham & Co, Re (1883) 25 Ch D 752 159 Donoghue v. Stevenson [1932] UKHL 100 392 Ebrahimi v. Westbourne Galleries Ltd [1973] AC 360 253, 446 Edwards v. Halliwell [1950] 2 All ER 1064 434 El Ajou v. Dollar Land Holdings Ltd [1994] 2 All ER 685 149, 150 Elginda, Re [1991] BCLC 959 449 Equitable Life Assurance Society v. Hyman [2002] 1 AC 408 340 Estmanco (Kilner House) Ltd v. Greater London Council [1982] 1 WLR 2 434 Euro Brokers Holdings Ltd v. Monecor (London) Ltd [2003] 1 BCLC 506 343 Exchange Banking Co, Flitcroft’s Case, Re (1882) 21 Ch D 519 262 Ex parte Bennett (1805) 32 E.R. 893 268 Ex parte James (1803) 32 E.R. 385 268 Ex parte Lacey (1802) 31 E.R. 1228 268 F&C Alternative Investments (Holdings) Ltd v. Barthelemy [2012] Ch 613 416 Ferguson v. Wilson (1866) LR 2 Ch App 77 145 FHR European Ventures LLP v. Cedar Capital Partners LLC [2015] AC 250 392 Foss v. Harbottle (1843) 2 Hare 461; [1843] 67 ER 189 433, 434, 435, 436, 438, 444 Fowler v. Gruber [2010] 1 BCLC 563 445, 446 Freeman & Lockyer v. Buckhurst Park Properties Ltd [1964] 2 QB 480 145, 148 Fulham Football Club (1987) Ltd v. Richards [2012] 1 BCLC 335 451 Gaiman v. National Association for Mental Health [1970] 2 All ER 362; [1971] Ch 317 7, 158

xx list of cases

GHLM Trading Ltd v. Maroo [2012] EWHC 61 378 Government of Mauritius v. Union Flacq Sugar Estates Co Ltd [1992] 1 WLR 903 (PC) 335 Grace v. Biagioli [2006] 2 BCLC 70 451 Graham v. Every [2015] 1 BCLC 41 450 Greenhalgh v. Ardene Cinemas Ltd [1951] Ch 286 7, 41 Halt George, Re (1964) Ltd [1982] 3 All ER 1016 262 Harmer Ltd, Re [1959] 1 WLR 62 446 Hawkes v. Cuddy [2009] 2 BCLC 427 384, 451 Hilton v. Barker Booth & Eastwood [2005] 1 WLR 567 417 HL Bolton Engineering Co Ltd v. TJ Graham Sons Ltd [1957] 1 QB 159 150 HM Commissioners of Inland Revenue v. Laird Group plc [2003] UKHL 54 109 Hogg v. Cramphorn Ltd [1967] Ch 254 32 Howard Smith Ltd v. Ampol Petroleum Ltd [1974] 1 All ER 1126; [1974] AC 821 159 Hutton v. West Cork Railway Co (1883) 23 Ch. D. 654 375 Hydrodam (Corby) Ltd, Re [1994] BCC 161; [1994] 2 BCLC 180 247, 411, 412 Imperial Mercantile Credit Association v. Coleman (1873) LR 6 HL 189 248 In MCA Records Inc. v. Charly Records Ltd [2003] 1 BCLC 93 339 In Re Coalport China Company [1895] 2 Ch 404 353 In re Gresham Life Assurance Society [1872] Ch App 446; [1861–73] All ER Rep 903 353 Isle of Wight Railway v. Tahourdin (1883) 25 Ch.D. 320 146 Item Software (UK) Ltd v. Fassihi [2004] EWCA Civ 1244; [2005] 2 BCLC 91 31, 157, 378 Jetivia SA v. Bilta (UK) Ltd [2016] AC 1 145 Johnson v. Gore Wood & Co [2002] 2 AC 1 143 Kaytech International plc Re [1999] 2 BCLC 351 249, 412 Kelly v. Cooper [1993] AC 205 (PC) 416, 417 Kleinwort Benson Ltd v. Lincoln City Council [1999] 2 AC 349 392 Knight v. Frost [1999] 1 BCLC 364 (Ch) 157 Kong Thai Sawmill (Miri) Sdn Bhd, Re [1978] 2 MLJ 227 (PC) 252 Kuwait Asia Bank EC v. National Mutual Life Nominees Ltd [1990] BCLC 868 384 Lee & Lee’s Air Farming [1961] AC 12 109 Lennard’s Carrying Co. Ltd v. Asiatic Petroleum Co. Ltd [1915] AC 705 149, 151 Lloyd v. Casey [2002] 1 BCLC 454 445, 446 Macdougall v. Gardiner (1875) 1 Ch D 13 335 Madoff Securities International Ltd. v. Raven [2011] EWHC 3102 (Comm.) 380, 418 Madoff Securities International Ltd (in liq) v. Raven [2013] EWHC 3147 (Comm.) 31, 159, 160 Menier v. Hooper’s Telegraph Works (1874) 9 Ch App 350 143, 336, 408, 434 Meridian Global Funds Management Ltd v. Securities Commission [1995] 2 AC 500 (PC) 146, 148

list of cases xxi

Multinational Gas and Petrochemical Co v. Multinational Gas and Petrochemical Services Ltd [1983] 2 All ER 563 8 Mumtaz Properties Ltd, Re, Wetton v. Ahmedi [2012] 2 BCLC 9 249 Mutual Life Assurance Co of New York v. Rank Organisation Ltd [1985] BCLC 11 178 Neath Rugby Ltd (No 2), Re, Hawkes v. Cuddy (No 2) [2009] 2 BCLC 427 451 Northern Counties Securities Ltd v. Jackson & Steeple Ltd [1974] 2 All ER 625; [1974] 1 WLR 1133 8, 338, 340 North-West Transportation Co Ltd v. Beatty (1887) 12 App Cas 589 (PC) 8, 12, 14, 334, 336, 337, 407 O’Neill v. Phillips [1999] 1 WLR 1092 253, 254, 445, 446 Paycheck Services 3 Ltd, Re, Revenue and Customs Commissioners v. Holland [2011] 1 BCLC 141 412 Pender v. Lushington (1877) 6 Ch D 70 7, 10, 334, 335, 336, 337 Petrodel Resources Ltd v. Prest [2012] EWCA Civ 1395 145 Prest v. Petrodel Resources Ltd [2013] 2 AC 415 13, 144, 251, 384 Prudential Assurance Co Ltd v. Newman Industries Ltd (No 2) [1981] Ch 257 434 Prudential Assurance Co Ltd v. Newman Industries Ltd (No 2) [1982] Ch 204 435 Puddephatt v. Leith [1916] 1 Ch 200 340 Regal (Hastings) Ltd v. Gulliver [1967] 2 AC 134 262, 265, 378 Regentcrest plc v. Cohen [2001] 2 BCLC 80 (Ch) 31, 157, 375 Richborough Furniture Ltd, Re [1996] 1 BCLC 507 249 RSB Holdings Ltd (No 2), Re [1996] 1 BCLC 155 178 Salomon v. Salomon & Co Ltd [1897] AC 22 109, 140, 141 Scottish Cooperative Wholesale Society v. Meyer [959] AC 324 384 Secretary of State for Business, Innovation and Skills v. Chohan [2013] EWHC 680 249 Secretary of State for Trade and Industry v. Becker [2003] 1 BCLC 555 248, 411 Secretary of State for Trade and Industry v. Hollier [2007] BCC 11 249, 412 Secretary of State for Trade and Industry v. Jones [1999] CC 336 249 Secretary of State for Trade and Industry v. Tjolle [1998] 1 BCLC 333 412 Shaw & Sons (Salford) Ltd v. Shaw [1935] 2 KB 113 146, 147 Shepherds Investments Ltd v. Walters [2006] EWHC 836 (Ch); [2007] 2 BCLC 202 31, 157, 378 Shuttleworth v. Cox Bros & Co (Maidenhead) Ltd [1927] 2 KB 9 41, 250 Sidebottom v. Kershaw, Leese and Company Ltd [1920] 1 Ch 154 41 Simtel Communications Ltd v. Rebak [2006] 2 BCLC 571 184 Smith v. Croft (No 2) [1988] Ch 114 434, 435 Smith & Fawcett, Re [1942] Ch 304 33, 110, 353, 375 Smithton Ltd v. Naggar [2014] BCC 482 412 South Australian Asset Management Corp v. York Montague Ltd [1996] 3 All ER 365 159 Southern Counties Fresh Foods Ltd, Re [2008] EWHC 2810 385 Southern Foundries (1926) Ltd v. Shirlaw [1940] AC 701 339

xxii list of cases

Standard Chartered Bank v. Walker [1992] BCLC 603 14 Tang Man Sit v. Capacious Investments Ltd [1996] AC 415 (PC) 31 Tesco Supermarkets Ltd v. Nattrass [1972] AC 153 140, 145 Trevor v. Whitworth (1887) 12 App Cas 409 41 Ultraframe (UK) Ltd v. Fielding [2005] EWHC 1638 248, 411 Unisoft Group Ltd (No 3), Re [1994] 1 BCLC 609 248, 411, 449 Vatcher v. Paull [1915] AC 372 337, 340, 434 Vivendi SA Centenary Holdings III Ltd v. Richards [2013] EWHC 306 416 Wallersteiner v. Moir (No 2) [1975] 1 All ER 849 438, 439 West Mercia Safetywear Ltd v. Dodd [1988] BCLC 250 176, 262, 408 Wilkinson v. West Coast Capital [2007] BCC 717 341, 342 Yarborough v. The Bank of England (1812) 16 East 6; 104 ER 991 145 York Buildings Co. v. Mackenzie (1795) 8 Bro 42; (1795) 3 ER 432 267 United States DiLillo v. Ustman Technologies, Inc., 2001 WL 1469057 (Cal. Ct. App. Nov. 9, 2001) 260 Donahue v. Rodd Electrotype Co., 328 N.E.2d 505 (Mass. 1975) 323 In re Cysive, Inc. Shareholders Litigation, 836 A.2d 531 (Del. 2003) 322 Ivanhoe Partners v. Newmont Mining Corp., 535 A.2d 1334 (Del. 1987) 322 Jones v. H Ahmanson & Co, 460 P.2d 464 (Cal. 1969) 20, 321 Kahn v. Lynch Communications Systems, Inc., 638 A.2d 1110 (Del. 1994) 20, 321, 322 Kahn v. M&F Worldwide Corporation, 88 A.3d 635 (Del. 2014) 322 Kasky v. Nike, Inc., 45 P 3d 243 (Cal. 2002) 195 Kavanaugh v. Kavanaugh Knitting Co., 123 N.E. 148 (NY 1919) 321 Sinclair Oil Corp v. Levien, 280 A.2d 717 (Del. 1971) 20, 324 Smith v. Atlantic Properties, Inc., 422 N.E.2d 798 (Mass. App. Ct. 1981) 323, 324 Weinberger v. UOP, Inc., 457 A.2d 701 (Del. 1982) 321, 322 Withers v. Teachers’ Retirement System, 447 F. Supp. 1248 (S.D.N.Y. 1978) 360 Withers v. Teachers’ Retirement System, 595 F.2d 1210 (2d Cir. 1979) 360

LEGISLATION AND REGULATIONS

European Union Directive (EU) 2017/828 of the European Parliament and of the Council of 17 May 2017 amending Directive 2007/36/EC as regards the encouragement of long-term shareholder engagement, 21, 101, 308, 309 Germany Co – Determination Act of 1976 (Gesetz über die Mitbestimmung der Arbeitnehmer (Mitbestimmungsgesetz – MitbestG), s 1, 7, 106 Hong Kong Companies (Model Articles) Notice (Cap 622H), Art. 2(1), 2(2), 3(1), 22, 4 Companies Ordinance (Cap 622), s 88, 116(2), 182, 460(2), 462, 473, 486(2), 500, 566, 568, 724, 740(6), 11, 39, 220, 345, 379, 435 Hong Kong Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32), s 228, 11, 12 Hong Kong Stock Exchange GEM Listing Rules, 17.96(4), 230 Hong Kong Stock Exchange Main Board Listing Rules, 1.01, 2.16, 2.27, 3.10, 3.13, 3.13 (6), 3.21, 14.06(3), 14.40, 14.44, 14.46, 14A.10, 14A.12, 14A.13, 14A.14, 14A.15, 14A.35, 14A.36, 14A.39, 14A.40, 14A.44, 14A.45, 14A.50, 14A.76(2), 50 Hong Kong Stock Exchange Main Board Listing Rules (Appendix 14), A 5.1, 5.2b, 5.5, 50 India Companies (Management and Administration) Amendment Rules, 2015, 242 Companies Act, 2013, s 2(69)(b), 2(76), 13, 14, 48(2), 85(2)(a), 94(2), 100, 100(2), 119 (b), 149(4), 149(10), 149(11), 150(2), 152(2), 166(2), 166(4) 169, 171(1)(a), 177(2), 178(1), 178(2), 179(1), 179(2), 180, 180(1), 185, 186(10), 187(3), 188, 188(1), 189(3), 190(2), 242, 245, 245(3)(i)(a), 246(1), 304, 11, 39, 85, 182, 183, 217, 227, 375, 432, 439, 442 Pension Fund Regulatory and Development Authority (Pension Fund) Regulations, 2015, s 22(3), 22(10), 354 Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, s 16(1)(b), 18(1)(b), 23(2), 23(3), 23(3)(c), 23(4), 23(5)(a), 21, 217, 398

xxiii

xxiv list of legislation and regulations

Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, Fifth Schedule, s 1, 4, 6, iii, 354 Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations (2011), s 2(1)(e), 42 Malaysia Bursa Malaysia Main Market Listing Requirements, 1.01, 10, 10.07, 10.07(1)(b), 10.08 (1), 10.08(2), 10.08(2)(c), 10.08(3), 10.08(7), 10.08(11)(i), 10.09(2), 15.02(1), 15.09 (1)(b), 12, 42, 142, 215, 216, 217, 218, 221 Bursa Malaysia Main Market Listing Requirements Appendix, 10B (24), 10C (3)(a), 10D (6), 10D (5), 216, 218, 231, 259 Companies Act 2016 (Act 777), s 36, 36(1), 36(2), 93(1), 195, 195(2), 195(3), 203(1), 206, 206(2), 211(2), 213(1), 214(1), 214(1)(b), 224, 228, 288, 310(b), 311, 311(3), 346, 439, 585, 11, 220 Singapore Companies Act (Chapter 50), s 8A, 26, 74(1), 74(4), 149B, 152, 157A(2), 162, 172(1), 176, 176(1), 177, 189(1), 216, 290, 396A, 379 Singapore Exchange Mainboard Rules, 904(4)(a), 905, 906, 914, 917(4)(a)(ii), 919, 920 (1), 920(b)(v), 920(b)(vi), 921(4)(a), 921(5), 1010, 1014, 1014(2), 1015(1)(b), 42 United Kingdom Companies Act 2006, s 21, 166(2), 172(1), 172(2), 226, 226B, 309(1), 439, 439A, 6, 16, 184, 362, 379, 408, 436 UK Listing Authority Listing Rules, 9.2.2A, 9.2.2E, 9.2.2F, 10.2.2, 10.5.1, 238 United States Delaware General Corporation Law (2009), s 141(a), 4 Dodd – Frank Wall Street Reform and Consumer Protection Act of 2010, Pub. L. No. 111-203, 124 Stat 1376 (2010) Investment Company Act of 1940, 6 15 U.S.C. § 80a-35 (2012), s 36, 242, 312 Model Business Corporation Act (2008), s 8.01, 4

ABBREVIATIONS

Bursa Malaysia LR Bursa Malaysia Listing Requirements (Main Market) GLC Government-Linked Company HK CO Hong Kong Companies Ordinance (Chapter 622) HKEX GEM LR Hong Kong Stock Exchange Growth Enterprise Market Listing Rules HKEX LR Hong Kong Stock Exchange Listing Rules (Main Board) HKPRO Hong Kong Principles of Responsible Ownership IN CA India Companies Act 2013 MCII Malaysian Code for Institutional Investors MY CA Malaysia Companies Act 2016 (Act 777) PSU Public Sector Undertaking SEBI Securities and Exchange Board of India SEBI LODR Securities and Exchange Board of India Listing Obligations and Disclosure Requirements SFC Securities and Futures Commission of Hong Kong SG CA Singapore Companies Act (Chapter 50) Revised edn 2006 SGX Singapore Exchange SGX LR Singapore Exchange Listing Rules (Main Board) SOE State-Owned Enterprise SSP Singapore Stewardship Principles for Responsible Investors

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