When a company commences winding-up, the disposition of its property and the transfer of shares in the company is void under section 130 of the Insolvency, Restructuring and Dissolution Act 2018, unless the Court otherwise orders. Under what conditions will the Court allow such disposition or transfer? This was the question in Ong Boon Chuan v Tong Guan Food Products Pte Ltd [2022] SGHC 181, when the Singapore High Court was faced with an application for the sale and transfer of shares in an insolvent company.
The Court chose to exercise its discretion under section 130 in favour of the applicant, granting the order for sale and transfer. In reaching its decision, the Court set out the applicable principles in determining the exercise of its discretion. This Update provides a summary of the Court’s decision and the key points of law regarding the operation of section 130.
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