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CLIENT UPDATE 2016 MARCH DISPUTE RESOLUTION © Rajah & Tann Singapore LLP 1 Singapore Court of Appeal: Derivative Actions by Shareholders not Available for Companies in Liquidation Introduction The Court of Appeal has decided on an important and novel point of law regarding derivative actions. In Petroships Investment Pte Ltd v Wealthplus Pte Ltd and others [2016] SGCA 17, the Court of Appeal held for the first time that derivative actions are not available where the company in question is in liquidation. In the landmark judgment, the Court of Appeal also made a number of important observations in relation to the continued applicability of the common law derivative action. The issue is significant as the statutory derivative action is already provided for under s 216A of the Companies Act. The 2nd and 3rd Respondents in the case were successfully represented at both the High Court and the Court of Appeal by Chandra Mohan Rethnam, Khelvin Xu, and Tan Ruo Yu of Rajah & Tann Singapore LLP....