Abstract:
This note examines the Court of Appeal’s observations in Townsing Henry George v Jenton Overseas Investment Pte Ltd [2007] SGCA 13 on the application of the principle of reflective loss to creditors. It is argued here that the principle should not apply to creditors because the loss that they suffer as a result of a depletion of a company’s assets flowing from a breach of duty owed to the company is not really reflective of the company’s loss. In addition, the policy arguments supporting the application of the principle to shareholders do not support a similar application of the principle to creditors.