ThoughtLeaders4FIRE has published Director Zhuo Jiaxiang and Counsel Danny Quah’s article titled “When does foreign illegality vitiate the enforcement of a Singapore trust?”.

In the article, Jiaxiang and Danny discuss how the Singapore International Commercial Court (SICC) case of Baker, Michael A (executor of the estate of Chantal Burnison, deceased) v BCS Business Consulting Services Pte Ltd [2020]  SGHC(I) 10 deals with the issue of whether a Singapore trust arrangement is unenforceable because it was illegal or set up for an illegal purpose.

It was noted that the SICC propounded a two-stage test: First, whether the agreement, as opposed to the conduct of the parties, was illegal, subject to the principle of proportionality. Second, whether there may still be restitutionary recovery of the benefits conferred notwithstanding the illegal agreement.

Download and read article here