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Editorial

THE AIROCEAN CASE: LESSONS FOR INDEPENDENT DIRECTORS

May 2011 - Crime. Legal Developments by Drew & Napier LLC .

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PP v Chong Keng Ban @ Johnson Chong & Ors [2011] SGDC 4

Summary

In PP v Chong Keng Ban @ Johnson Chong & Ors [2011] SGDC 4, an independent director of a listed company was sentenced to 4 months' imprisonment for consenting to the company making a misleading statement.

This is the first time that an independent director has been sentenced to a term of imprisonment for this offence. In the court's view, a custodial sentence was justified as the independent director was the "most culpable" and had played an "active role" in the events which took place.

The independent director has appealed against his conviction and sentence.

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About Drew & Napier LLC

Established in 1889, Drew & Napier LLC is one of Singapore's leading and largest law firms, with over 250 lawyers and fee-earners. Consistently rated top tier in dispute resolution over the years by international ranking organisations such as Asia Pacific Legal 500, Chambers Global, Practical Law Company, Best Lawyers and Asia Law, the firm has 7 Senior Counsel. The firm is headed by chief executive officer, Davinder Singh, Senior Counsel. Drew & Napier LLC is also rated top tier in Corporate Insolvency & Restructuring, Intellectual Property (Patents and Trademarks), Competition & Antitrust, Telecommunications, Media & Technology and Tax, with market leading practices in Mergers & Acquisitions, Corporate Finance, and Admiralty & Shipping. For more information, please visit www.drewnapier.com

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