The Singapore High Court has dismissed a class action brought on behalf of 1,102 investors across Asia, holding that the assignment of their rights to litigate to a S$1 shell company was contrary to public policy and void, with the result that the shell company had no standing to bring the action. The High Court also found that the marketing agent and security party that were sued in Singapore were not liable for losses in the crude oil investments, and instead other sales agents and individuals in Malaysia, Hong Kong and Macau had misled investors with promises of capital protection and/or were responsible for the investment losses: POA Recovery Pte Ltd v Yau Kwok Seng & Ors [2021] SGHC 41.

This update takes a look at the High Court’s decision.

If you would like information and/or assistance on the above or any other area of law, you may wish to contact the Partner at WongPartnership whom you normally deal with or any of the following Partners:

Melanie HO
Deputy Head – Specialist & Private Client Disputes
d +65 6416 8127
Click here to see Melanie’s CV.

Alvin LIM
Partner – Specialist & Private Client Disputes
d +65 6416 6460
Click here to see Alvin’s CV.