Source of article: Business Times

Writing credits: Raphael Lim

Beyond complaining to the market regulator (the MAS or SGX-Regco) and/or requesting the Securities Investors Association (Singapore) to call out any alleged corporate mis-management, the viable recourse for investors is to institute law suits against errant managers and directors under whose watch the company ran aground.

In a corporate debacle, where senior management and the Board are perceived to be responsible for mis-management or negligence, it is the institutional investors who have the financial resources and the organizational capabilities to take errant corporate managers and directors to task and to be accountable for any alleged misconduct that resulted in financial losses to investors.

Conditional fee arrangement or third-party funding is not permitted for such litigation claims under present Singapore laws. There is a need to extend conditional fee arrangement or third-party funding assistance to retail investors in such legal claims. The Monetary Authority of Singapore has stated that it is closely studying the subject in its Third Enforcement Report published recently.

I shared my views with the Singapore Business Times in the attached report published today.

My LinkedIn post can be read here