equity swaps and implications in strongcompanystrong law an examination.pdf

Singapore Management University Institutional Knowledge at Singapore Management University Research Collection School Of Law School of Law 1-2012 Equity Swaps and Implications in Company Law : A n Ex amination of Singapore Law Chao-hung Christopher CHEN Sing ap ore Managem ent University, chchen@.sg Follow this and additional works at : http://ink ..sg/sol_research Part of the Corporation and Enterprise Law Commons Citation CHEN, Chao-hung Christopher. Equity Swaps and Implications in Company Law : An Ex amination of Singapore Law. (2012). , 1. Research Collection School Of Law. Available at : http://ink ..sg/sol_research/1066 This Working Paper is brought to you for free and open access y the School of Law at Institutional Knowledge at Singapore Management University. It has been accepted for inclusion in Research Collection School Of Law y an authorized administrator of Institutional Knowledge at Singapore Management University. For more information, please email li IR@.sg. EQUITY SWAPS AND IMPLICATIONS IN COMPANY LAW: AN EXAMINATION OF SINGAPORE LAW CHRISTOPHER CHEN* Abstract This article explores issues from the use of equity swaps by corporate stakeholders under Singapore law. The article accepts that non-disclosure of economic interests might have an impact on market efficiency and corporate governance. To address potential problems, Singapore should consider revising the Takeover Code, while it requires further regulatory impact analysis to decide whether amendments to the Securities and Futures Act and the Companies Act are needed. As an alternative, companies can use their articles of association to impose a duty of disclosure before statutory intervention. In addition, the trading of equity sw