BT PODCasts
A US$156m lawsuit: Implications for company directors
In consultation with Robson Lee
Robson Lee
Senior corporate finance lawyer
Imagine being told you owe US$156 million because you weren’t paying enough attention at work.
That was nearly the fate of former Inter-Pacific Petroleum non-executive director Dr Goh Jin Hian until a June 5th Appellate Division of the High Court judgment this year, overturned an earlier ruling that held him personally liable for the company’s losses. The reversal not only saved him a colossal payout, but also sent ripples through boardrooms across Singapore.
In this episode of BT Podcasts, hosted by The Business Times podcast correspondent Howie Lim, unpacks what the judgment really means for directors, executive or otherwise. Veteran corporate finance lawyer Robson Lee, a partner at Kennedys and director at Legal Solutions LLC, provides expert insight into corporate governance and director liability.
The verdict may have been a relief to directors everywhere but it’s not a free pass. Robson Lee breaks down how courts determine negligence, what the burden of proof really is, and why relying on the CFO’s word isn’t a get-out-of-jail-free card unless you’ve got the documentation to prove it.
Produced by: Howie Lim (howielim@sph.com.sg), Claressa Monteiro & Chai Pei Chieh Edited by: Howie Lim & Claressa Monteiro
GRAPHICS: CHARMAINE MARTIN
Do note: This podcast is meant to provide general information only. SPH Media accepts no liability for loss arising from any reliance on the podcast or use of third party’s products and services. Please consult professional advisers for independent advice.
More about Robson Lee: robsonlee.com
Listen, follow and rate BT Podcasts on
Discover more BT Podcasts
Listen, follow and rate BT Podcasts on
Discover more BT Podcasts
Why listen?
Because being a director is no longer just a prestige appointment
You don’t need to be signing cheques to be held responsible. Non-executive directors are equally exposed to lawsuits and even criminal liability.
Because the days of rubber-stamping are over
"Trust but verify" is no longer enough. It’s “ask, confirm in writing, and file it properly” especially when urgent approvals start flying in.
Because the court has drawn a clearer line
The judgment clarifies that negligence alone isn’t enough. There must be clear causation between the director’s lapse and the company’s losses.
Because good governance needs actual systems
Think robust internal controls, whistleblower protections, and email trails. And, yes, get that D&O insurance before you even step into the boardroom.
Because legal fees can ruin you before a court does
Even if you’re ultimately cleared, a lawsuit can drag on for years. Insurance helps but it won’t cover you if you’re criminally negligent.
From red flags and email trails to boardroom culture and reputational risk, this episode is a must-listen for anyone sitting on or thinking of sitting on a company board.
This episode of BT Podcasts was produced in consultation with Robson Lee.
This podcast is meant to provide general information only. SPH Media accepts no liability for loss arising from any reliance on the podcast or use of third party's products and services. Please consult professional advisors for independent advice.
For questions or thoughts about the show, feel free to email: btpodcasts@sph.com.sg
