Ng Kok Teck v Lu Yuan: Dispute over Ming Lam Holdings Shares and Margin Financing
In Ng Kok Teck v Lu Yuan, the High Court of Singapore addressed a dispute arising from a business arrangement involving shares of Ming Lam Holdings Ltd. The Plaintiff, Ng Kok Teck, sued the Defendant, Lu Yuan, for over $14 million, alleging she failed to pay the balance of the purchase price for 300 million shares. The Defendant contended she merely held the shares on trust for the Plaintiff. The court dismissed the Plaintiff's claim, finding the Defendant's account more credible and concluding she held the shares on behalf of the Plaintiff for margin trading purposes.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Plaintiff’s claim is dismissed with costs to the Defendant
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court case involving Ng Kok Teck and Lu Yuan concerning the sale of Ming Lam Holdings shares and margin financing. The court dismissed Ng Kok Teck's claim.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Ng Kok Teck | Plaintiff | Individual | Claim Dismissed | Lost | Tan Cheng Kiong |
| Lu Yuan | Defendant | Individual | Judgment for Defendant | Won | David Nayar |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lai Siu Chiu | Senior Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Tan Cheng Kiong | CK Tan Law Corporation |
| David Nayar | David Nayar and Associates |
4. Facts
- The Plaintiff sued the Defendant for over $14m, alleging she failed to pay the balance of the purchase price for 300m shares.
- The Plaintiff was a shareholder of Ming Lam Holdings Ltd and needed to raise cash urgently.
- The Defendant is the sister-in-law of Ding Lei, a business associate of the Plaintiff.
- The Defendant agreed to hold 300m Ming Lam shares on behalf of the Plaintiff.
- The Defendant opened a bank account with HSBC as required by the Plaintiff.
- The Plaintiff opened an account with Grand China Securities Ltd for margin trading, using the 300m shares as collateral.
- The Defendant remitted S$200,000 to the Plaintiff in Singapore.
5. Formal Citations
- Ng Kok Teck v Lu Yuan, Suit No 1238 of 2019, [2021] SGHC 221
6. Timeline
| Date | Event |
|---|---|
| Plaintiff approached Ding Lei in Hong Kong to raise cash using Ming Lam shares. | |
| Ding Lei contacted the Defendant to hold 300m Ming Lam shares for the Plaintiff. | |
| Defendant signed account opening forms and standing authority letters of Grand China. | |
| Settlement instructions form of Grand China signed. | |
| Defendant remitted S$200,000 to the Plaintiff in Singapore. | |
| Contract note issued by Grand China showed 100m Ming Lam shares sold to the Defendant. | |
| Grand China sent a letter to the Defendant demanding payment of HKD 624,400.81. | |
| Grand China statement of Defendant’s margin account for the period 2 January 2018 to 18 June 2019. | |
| Grand China statement of Defendant’s margin account for the period 2 January 2018 to 18 June 2019. | |
| Grand China statement of Defendant’s margin account for the period 2 January 2018 to 18 June 2019. | |
| Grand China statement of Defendant’s margin account for the period 2 January 2018 to 18 June 2019. | |
| Grand China statement of Defendant’s margin account for the period 2 January 2018 to 18 June 2019. | |
| Trial began. | |
| Trial continues. | |
| Judgment reserved. | |
| Judgment issued. |
7. Legal Issues
- Breach of Contract
- Outcome: The court did not find a breach of contract because it determined that the Defendant did not purchase the shares.
- Category: Substantive
- Trust
- Outcome: The court found that the Defendant held the shares on trust for the Plaintiff.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
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
- Ming Lam Holdings Ltd
- Margin Financing
- Grand China Securities Ltd
- HSBC Account
- 300m Shares
- Trust
- Sale Note
15.2 Keywords
- Shares
- Margin Financing
- Breach of Contract
- Trust
- Securities
- Banking
16. Subjects
- Contract Law
- Trust Law
- Securities Law
- Banking Law
17. Areas of Law
- Banking Law
- Lending and Security Law
- Stocks and Shares Law