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

• Main Author: KOH, Pearlie
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2001
• Subjects: statutory derivative action; Singapore; corporate governance; section 216A; section 216B; Singapore Companies Act; Asian Studies; Business Organizations Law; Commercial Law
• 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
• Institution: Singapore Management University

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.