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Singapore no conflict ruleaccount of profitsconflict of interest s175

Sim Poh Ping v Winsta Holding Pte Ltd

[2020] 1 SLR 1199
JurisdictionSingapore
CourtSingapore Court of Appeal
Year2020
StatusBinding authority

Summary

A director's duty of loyalty prohibits conflict of interest, and breach entitles the company to an account of profits without proof of loss.

Key Principle

The SGCA confirmed that a director's duty of loyalty includes the duty not to place themselves in a position of conflict of interest; a breach of this duty entitles the company to an account of profits regardless of whether the company suffered loss.

Area of Law

company

Related Cases

Shafron v Australian Securities and Investments Commission (2012) 247 CLR 465

A company secretary is an 'officer' under the Corporations Act and owes a duty of care and diligence under s 180 in performing their functions.

Bell Group Ltd (in liq) v Westpac Banking Corporation [2012] WASCA 157

Directors of an insolvent company owe duties to creditors, and bank claims may be subordinated where unconscionable conduct is established in dealings with the insolvent company.

Barclay v Penberthy (2012) 246 CLR 258

The standard of care under s 180 of the Corporations Act is that of a reasonable person in the director's position, having regard to the corporation's circumstances and the director's office.

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