Judgment was given by the Court of Appeal last month in Rothstar Group Ltd v Leow Quek Shiong [2022] SGCA 25: see here (pdf).
The case is an important one in that is has confirmed that the grant of security for a third party's debt can in principle constitute a transaction at an undervalue. The court therefore held that the scope of what is known as the principle in MC Bacon was limited to security granted for the grantor's own existing debt.
Wednesday, 6 April 2022
Singapore: Court of Appeal on transactions at an undervalue and the principle in MC Bacon
Judgment was given by the Court of Appeal last month in Rothstar Group Ltd v Leow Quek Shiong [2022] SGCA 25: see here (pdf).
The case is an important one in that is has confirmed that the grant of security for a third party's debt can in principle constitute a transaction at an undervalue. The court therefore held that the scope of what is known as the principle in MC Bacon was limited to security granted for the grantor's own existing debt.
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