Yong Ching See v Lee Kah Choo Karen: Resulting Trusts & Beneficial Ownership of Shares
In Yong Ching See v Lee Kah Choo Karen, the High Court of Singapore heard a claim by Yong Ching See against Lee Kah Choo Karen for the transfer of 175,000 shares in Alsecure International Pte Ltd, arguing that the defendant held the shares on trust for the plaintiff. The court, presided over by Justice Lai Siu Chiu, found in favor of the plaintiff, determining that a resulting trust existed and ordering the defendant to transfer the shares to the plaintiff.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for Plaintiff
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Plaintiff claimed defendant held shares on trust for him. Court found a resulting trust existed, ordering defendant to transfer shares to plaintiff.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Yong Ching See | Plaintiff | Individual | Judgment for Plaintiff | Won | |
| Lee Kah Choo Karen | Defendant | Individual | Claim Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lai Siu Chiu | Judge | Yes |
4. Counsels
4. Facts
- Plaintiff provided funds for Alsecure's paid-up capital.
- 175,000 shares in Alsecure were registered in the defendant's name.
- Plaintiff claimed the defendant held the shares on trust for him.
- Defendant argued the funds were a gift or a loan to Lily.
- A Memorandum of Understanding (MOU) was allegedly signed regarding the share ownership.
- The plaintiff expressed concerns about his investment in Alsecure.
- Proposed sale of Alsecure to the defendant was unsuccessful.
5. Formal Citations
- Yong Ching See v Lee Kah Choo Karen, Suit 76/2007, [2008] SGHC 68
6. Timeline
| Date | Event |
|---|---|
| Defendant left employment of Assa Abloy Pte Ltd | |
| Alsecure was incorporated | |
| Plaintiff signed a statement at ACIES Law Corporation | |
| Boon Wei resigned as Chairman and Director of Alsecure | |
| 199,998 shares were issued to Lily | |
| 174,999 shares were allotted to the defendant | |
| Defendant signed copies of the Memorandum of Understanding | |
| Plaintiff met with the defendant and Lily to discuss his investment | |
| Lily wanted to stop working | |
| Plaintiff commenced proceedings for the return of shares | |
| Judgment reserved |
7. Legal Issues
- Beneficial Ownership
- Outcome: The court determined that the plaintiff was the beneficial owner of the shares.
- Category: Substantive
- Resulting Trust
- Outcome: The court found that a resulting trust existed, with the defendant holding the shares on trust for the plaintiff.
- Category: Substantive
- Estoppel
- Outcome: The court rejected the defendant's arguments for estoppel by convention and estoppel by representation.
- Category: Substantive
- Sub-Issues:
- Estoppel by Convention
- Estoppel by Representation
8. Remedies Sought
- Transfer of Shares
- Declaration of Beneficial Ownership
9. Cause of Actions
- Breach of Trust
- Claim for Beneficial Ownership
10. Practice Areas
- Commercial Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Westdeutsche Landesbank Girozentrale v Islington London Borough Council | N/A | Yes | [1996] AC 669 | N/A | Cited for the principle that resulting trusts arise to fulfill the implied intentions of the parties. |
| Lau Siew Kim v Yeo Guan Chye Terence and Another | Court of Appeal | Yes | [2007] SGCA 54 | Singapore | Cited for the distinction between the presumption of resulting trust and the resulting trust itself. |
| Vandervell v IRC | N/A | Yes | [1967] 2 AC 291 | N/A | Cited for the principle that a resulting trust arises where the donor intends the donee not to take beneficially. |
| Air Jamaica Ltd v Charlton | N/A | Yes | [1999] 1 WLR 1399 | N/A | Cited for the principle that a resulting trust responds to the absence of intention to pass a beneficial interest to the recipient. |
| Re Sick and Funeral Society of St John's Sunday School Golcar | N/A | Yes | [1973] Ch 51 | N/A | Cited for the principle that any property that a man does not effectually dispose of remains his own. |
| Dyer v Dyer | N/A | Yes | (1788) 2 Cox Eq Cas 92 | N/A | Cited for the principle that a trust results to the man who advances the purchase-money. |
| Standing v Bowring | N/A | Yes | (1885) 31 Ch D 282 | N/A | Cited for the principle that trusts are implied to give effect to the true intentions of donors or settlors. |
| Fowkes v Pascoe | N/A | Yes | (1875) 10 Ch App. 343 | N/A | Cited for the principle that the weight of the presumption of a resulting trust varies in different cases. |
| Re Sharpe (a bankrupt) | N/A | Yes | [1980] 1 WLR 219 | N/A | Cited for the principle that the presumption of a resulting trust will be rebutted where evidence shows that money was advanced by way of a loan. |
| Cheong Yoke Kuen & Ors v Cheong Kwok Kiong | Court of Appeal | Yes | [1999] 2 SLR 476 | Singapore | Cited for the principle that a resulting trust arises in favour of the purchaser when they pay the purchase price of property conveyed to them jointly with others. |
| Amalgamated Investment & Property Co Ltd v Texas Commerce International Bank Ltd | N/A | Yes | [1982] QB 84 | N/A | Cited as the locus classicus on the doctrine of estoppel by convention. |
| Singapore Island Country Club v Hilborne | N/A | Yes | [1997] 1 SLR 248 | Singapore | Cited for the test for successfully relying on estoppel by convention. |
| MAE Engineering Ltd v Fire-Stop Marketing Services Pte Ltd | Court of Appeal | Yes | [2005] 1 SLR 379 | Singapore | Cited for the test for successfully relying on estoppel by convention. |
| United Overseas Bank Ltd v Bank of China | N/A | Yes | [2006] 1 SLR 57 | Singapore | Cited for the elements required to successfully raise a defence of estoppel by representation. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Resulting Trust
- Beneficial Ownership
- Shares
- Memorandum of Understanding
- Investment
- Loan
- Estoppel
- Paid-up Capital
- Alsecure International Pte Ltd
15.2 Keywords
- Trusts
- Shares
- Beneficial Ownership
- Singapore
- High Court
- Civil Case
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Resulting Trust | 95 |
| Trust Law | 90 |
| Presumed Resulting Trust | 90 |
| Estoppel by Convention | 40 |
| Estoppel by Representation | 40 |
| Corporate Law | 30 |
| Contract Law | 20 |
16. Subjects
- Trusts
- Equity
- Company Law