Environmental, Social & Governance (ESG) regulatory advice and consultancy

ESG

What is ESG?

ESG stands for environmental, social and governance.

Increasing investor, consumer and stakeholder concerns about climate change, sustainability, corporate governance, social justice and human rights have driven ESG consciousness. There have thus been international and national shifts and regulations to require businesses to proactively and transparently address ESG issues.

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Case: POA Recovery v Yau Kwok Seng [2022] SGHC(A) 2 – Special Purpose Vehicle assigned claims has locus standi

Significant decision by the Appellate Division of the High Court of Singapore: POA Recovery v Yau Kwok Seng [2022] SGHC(A) 2

The Court held that a special purpose vehicle (SPV) who was assigned the claims of various investors who alleged fraud has locus standi to pursue the claims.

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Law, at its very foundation, is conceived and derived from values.

“Law, at its very foundation, is conceived and derived from values.”
 
In this speech by Chief Justice James Allsop of the Federal Court of Australia titled “Values in law: how they influence and shape rules and the application of law”, he makes the case that law is fundamentally based on human values.
 
One aspect of that is to control human power.

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Case: Esben Finance Ltd and others v Wong Hou-Lianq Neil [2022] SGCA(I) 1 – limitation for unjust enrichment and fraud; lack of consent in unjust enrichment;

Significance: 5-judge coram of the Singapore Court of Appeal in the Singapore International Commercial Court (SICC) held that:

  • unjust enrichment claims are not subject to limitation  (based on the current wording of the Limitation Act (“LA”));
  • restitution for wrongs are also not subject to limitation unless the wrong is based on a civil wrong which is addressed in the LA;
  • for the s 29 LA postponement of limitation period for fraud or mistake, limitation period runs when circumstances, objectively viewed, give rise to a desire to investigate;
  • equitable doctrine of laches does not apply to common law claims;
  • a claimant could possibly claim in unjust enrichment for value transferred through intermediaries to the defendant if the substance of the arrangement resulted in a transfer of value from the claimant to the defendant. Value would be provided pursuant to a wider scheme but for which the transferor would not have had the value to transfer. A causal link must be established between (i) resources expended by the claimant and (ii) resources eventually transferred to the defendant. Resources transferred would be regarded as the assets of the claimants and not that of the intermediaries;
  • lack of consent could, in principle, be an unjust factor;
  • however, legally valid transfers of the claimant’s value without his consent or the retention by the defendant of the claimant’s value which the defendant is legally entitled to cannot be unjust;
  • lack of consent would generally not be available as an unjust factor in cases where an alternative established cause of action is already available to the claimant.
  • The Court also expressed a provisional view that an unjust enrichment (and not only a contractual) claim may be unenforceable if it offended the policy of international comity, if to permit it would otherwise result in the contravention of the laws of a foreign country. This is insofar as permitting the claim would stultify the policy of international comity. Also, this should extend to defences to claims in unjust enrichment, ie, the fundamental domestic public policy of international comity should bar defences in addition to claims in unjust enrichment, subject to the principle of stultification.

https://www.elitigation.sg/gd/s/2022_SGCAI_1

Legal and other issues with DAOs (Decentralised Autonomous Organisations)

Legal and other issues with Decentralized Autonomous Organizations or DAOs

In this article, I highlight a few problems with DAOs. The laws make it such that DAOs render members to unlimited liability arising from other members’ actions, DAOs cannot hold property in its own name, DAOs create tax problems for members, DAOs’ voted resolutions may not have legal force, and DAOs may be regulated by investment laws. I consider legal issues with setting up, formation or running of DAOs in Singapore. 

I’ve suggested two variations of a CLG model to address some of the legal issues.

Conceptually, DAOs run into the trust problem and the skill problem.

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Buyers Beware: Foreign Ownership of Indonesian Residential Property

Article by IHF Partners, Jakarta, Indonesia
in collaboration with Ronald JJ Wong, Covenant Chambers LLC, Singapore

The recent dispute in Indah Puri Golf Resort in Batam, which was reported to have affected foreigners including Singaporeans, highlights a case of a lease which expired in 2018.[1] When the resort was launched in 1993, the apartments were not available for foreign ownership. Although the law subsequently changed in 1996, 2015, and 2021[2]; none of these changes affected the lease involving the resort.

This article discusses types of title available for foreign ownership in Indonesia and possible legal recourse in event of a dispute.

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Inspired About the Criminal Justice System

On rare days, I get inspired by the integrity exhibited by people in the #justice system. Today is one such day.

By integrity, I mean their faithfulness to their vocation within the system.

I acted pro bono (free) for a low wage migrant worker charged for several offences. It’s a peculiar case. His involvement is minimal and tangential, which the prosecutors accept, but the events resulted in severe harm.

Prosecution initially indicated 12-18 months jail. We said it doesn’t make sense. The charges don’t even seem right. Everyone agreed to go for Criminal Case Resolution (CCR), which is a rarity.

The CCR Senior Judge read every document meticulously and questioned and considered carefully both sides’ submissions.

Charges were amended. Facts were clarified. Prosecution willingly adjusted their sentencing position. The light of justice then emerged. And my client received a low sentence relative to the initial indication from the prosecution. Today, the matter resolved.

In between 2015 (when investigations began) and today, my client’s case was dragged for reasons beyond his control, his mother passed away from Covid before he could go home to see her, his father was hospitalised, and he himself fell sick with Covid.

Soon, God willing, he will finally return home to his family.

I’m grateful for the Senior Judge, the prosecutors, my colleagues, and also the HOME staff who assisted my client, all of whom acted faithfully in their vocations in good faith, attentiveness and excellence.

Case: Miao Weiguo v Tendcare Medical Group Holdings Pte Ltd [2021] SGCA 116 – no reflective loss

Significant 5-person coram Singapore Court of Appeal decision clarifies the no reflective loss principle: Miao Weiguo v Tendcare Medical Group Holdings Pte Ltd (formerly known as Tian Jian Hua Xia Medical Group Holdings Pte Ltd) (in judicial management) and another [2021] SGCA 116

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