Publication Type

Journal Article

Publication Date

12-2013

Abstract

The ability to operate behind the shield of the corporate form, thereby benefiting from limited liability, is thought to be a privilege conferred by statute. This privilege is however, curtailed for certain individuals who are “proven misfits”. The removal, by disqualification, of these individuals from corporate management is intended to protect the shareholders and creditors of the companies concerned from the possibility of future instances of undesirable conduct by these same individuals. Thus, the Companies Act of Singapore provides for disqualification from holding directorships or from management of a company on a number of grounds. Disqualification may be automatic or dependent on a court making a disqualification order. There is also recognition that disqualification is punitive. Indeed, the effect of a disqualification, given its “substantial interference with the freedom of the individual”, is at least quasi-penal.

Discipline

Commercial Law

Research Areas

Commercial Law

Publication

Singapore Journal of Legal Studies

First Page

447

Last Page

456

ISSN

0218-2173

Publisher

National University of Singapore

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2414233

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