Stamford Law successfully represented venture capitalist Tembusu Growth Fund Ltd (Tembusu) in recovering its investment from Actatek, Inc (Actatek).
Tembusu had invested in Actatek by way of 2 convertible loan agreements to keep Actatek as a going concern so that it could list on the New Zealand Stock Exchange Alternative Market. A dispute later arose when it was discovered that Actatek was using part of the loan proceeds to repay its directors outstanding fees and salaries owed between 2008 to 2012.
Stamford Law successfully tailored a strategy for Tembusu to adjudicate its claim against Actatek in a fast, efficient and low costs manner. Traditionally, allegations of financial misconduct would entail a lengthy trial and expert accountant evidence. The team from Stamford Law successfully crafted an application under the summary procedure provided for in Order 14 rule 12 of the Singapore Rules of Court. Not only did it succeed in crafting the application, it also succeeded in securing a win for Tembusu. The team also successfully rebuffed Actatek’s attempt to rely on an expert report to support its case by highlighting to the court the report’s formal and substantive shortcomings.
The court’s decision on the matter is noteworthy in two ways. First, it marks the first reported case in many years where a plaintiff has succeeded in an O 14 r 12 application for summary determination on a point of law. Second, the case is also a timely reminder to parties seeking to rely on experts’ reports of the courts’ willingness to scrutinise both the formalities and the substance of such reports before accepting their contents as truth.
Daniel Chia and Kenneth Chua represented Tembusu.
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