Reflective Loss Principle: Why shareholders can’t always claim for the company’s decrease in value
Imagine you own 100% of a company’s shares. A director or third party misappropriates millions from the company’s bank account, rendering your shares worthless. Intuitively, you might think you can sue the wrongdoer personally for your loss. Under Singapore law, however, such a claim would likely fail, not because your loss is unreal, but because […]
How Majority Shareholders Can Avoid Oppression Claims
Minority oppression refers to the unjust treatment of minority shareholders by those in control of a company — whether majority shareholders or directors — who abuse their authority at the expense of those with smaller stakes. In Singapore, the primary legislative remedy is found in section 216 of the Companies Act, which provides minority shareholders […]
