The Statutory Derivative Action in Singapore: A Critical and Comparative Examination

As a mechanism for shareholder control of corporate wrongs and thus as a tool of corporate governance, the statutory derivative action has had much international attention given to it, particularly in the last 10 years. Singapore introduced its statutory derivative action in 1993 and since then, the...

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Bibliographic Details
Main Author: KOH, Pearlie
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2001
Subjects:
Online Access:https://ink.library.smu.edu.sg/sol_research/652
https://ink.library.smu.edu.sg/context/sol_research/article/1651/viewcontent/The_Statutory_Derivative_Action_in_Singapore.pdf
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Institution: Singapore Management University
Language: English
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Summary:As a mechanism for shareholder control of corporate wrongs and thus as a tool of corporate governance, the statutory derivative action has had much international attention given to it, particularly in the last 10 years. Singapore introduced its statutory derivative action in 1993 and since then, there have been two reported cases in which the action was invoked. In this paper, I consider the Singapore derivative action as contained in sections 216A and 216B of the Singapore Companies Act. The approach taken is a comparative one as I also look at the statutory derivative actions in Australia and other common law jurisdictions. I then identify possible areas for review, with a view to enhancing the potential effectiveness of the action.