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23 October 2018

Reformulating the Rules on Director Liability Exclusions in Said v Butt: PT Sandipala Arthaputra v STMicroelectronics Asia Pacific Pte Ltd [2018] 1 SLR 818 [Case Note]

Jarret Huang

Published on e-First 23 October 2018

Abstract:
In PT Sandipala Arthaputra v STMicroelectronics Asia Pacific Pte Ltd [2018] 1 SLR 818, the court reformulated the rules concerning the imposition of personal liability on directors for breaches of contract by their companies. As the law now stands, directors are protected from personal liability for their companies’ breaches of contract in so far as they had acted in their capacity as directors and had not breached any personal legal duties owed to their companies. However, the judgment left the position on personal liability for a company’s tortious acts significantly different. This note argues that the position in tort should be brought in line with that for contract.