Singapore Court of Appeal affirms High Court decision on the fiduciary duties of a director of an insolvent or financially parlous company

The decision of the Singapore High Court in Park Hotel Management Pte Ltd (in liquidation) & Ors  v Law Ching Hung & Ors [2025] SGHC 149 (“HC Decision”) reaffirmed the principle that where a company is insolvent or financially parlous, the general fiduciary duties of a director continue to apply, but are weighted towards the interests of the company’s creditors. Where a company is in a financially parlous position, the law imposes a duty on the director to consider the creditors’ interests, to accord them…