Eversheds Harry Elias Of Counsel Shaun Leong and Legal Associate Geraldine Toh successfully acted for KGI Securities in a significant Singapore Court of Appeal case. Shaun was the lead advocate for the successful appeal hearing on 20 February 2019 before the Court of Appeal, the apex court of Singapore. The appeal relate to KGI Securities’ claims that arose from arrears outstanding from margin trading accounts and derivatives transactions entered into pursuant to the ISDA Master Agreement. The debtor applied for an individual voluntary arrangement. KGI Securities sought to revoke the purported approval given at a creditors’ meeting for the arrangement on the basis that there were material irregularities in relation to the meeting. The Court of Appeal had to consider the debtor’s obligations of candour and the nominee’s duty to exercise independent professional judgment in relation to the approval of the arrangement.
Shaun Leong’s view:
“This was personally a significant win given that it was a hearing before the apex court of Singapore. More importantly, we are pleased that we achieved the desired outcome for KGI Securities, an important client of our firm Eversheds Harry Elias. I would like to think that this successful appeal sends a message that would support our client, which is that obligations arising out of securities and derivatives transactions need to be readily fulfilled and are in any event otherwise inescapable. Inherent in the appeal were public policy considerations around the rationale and purpose of voluntary arrangements, and we are pleased to play a role in assisting the Court’s consideration of the matter.”