The Airocean case: Lessons for Independent Directors

29 Mar 2011

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.

To read the update, please click here.