Dways International v. Lim Seow Hui: Director's Duties, Conspiracy, Defamation in Nutritional Product Sales
Dways International Pte Ltd (formerly known as D’way International Pte Ltd and as Longevite Pte Ltd) sued Lim Seow Hui Ratna Irene, Lim Kim Hwa, Tang Lee Cheng, and Chua Hong Chor in the General Division of the High Court of the Republic of Singapore, alleging breaches of director's duties, conspiracy to injure, defamation, and seeking repayment of a loan. The court, presided over by Audrey Lim J, found Irene liable for certain unauthorized payments and jointly liable with Justin for a shareholder's allowance and a TLC investment. The Chuas were found liable for the outstanding loan. Dways' claim for misappropriation of revenue was dismissed, but damages were to be assessed for misappropriation of products and defamation.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Judgment for Plaintiff in part; some claims dismissed; damages to be assessed.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Dways International sues its ex-director for breach of duty, conspiracy, and defamation related to nutritional product sales. The court found for Dways on some claims.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Dways International Pte Ltd (formerly known as D’way International Pte Ltd and as Longevite Pte Ltd) | Plaintiff | Corporation | Judgment for Plaintiff in part | Partial | |
| Lim Seow Hui Ratna Irene | Defendant | Individual | Liable for Disputed Payments | Lost | |
| Lim Kim Hwa | Defendant | Individual | Jointly liable for US$1,527.20 | Lost | |
| Tang Lee Cheng | Defendant | Individual | Jointly and severally liable for $30,000 | Lost | |
| Chua Hong Chor | Defendant | Individual | Jointly and severally liable for $30,000 | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Audrey Lim | Judge | Yes |
4. Counsels
4. Facts
- Dways sells nutritional products via direct-selling with a multi-tier compensation scheme.
- Irene was a director of Dways, and Justin was claimed to be the CFO.
- The Lims' relationship with Nancy/Zul soured due to disagreements over business practices.
- Dways claimed the Lims made wrongful payments from its bank accounts and misappropriated products.
- Dways alleged the Lims failed to maintain proper accounts and deleted information from its computer system.
- Irene sent WhatsApp messages and letters containing defamatory statements about Dways.
5. Formal Citations
- Dways International Pte Ltd (formerly known as D’way International Pte Ltd and as Longevite Pte Ltd) v Lim Seow Hui Ratna Irene and others, Suit No 447 of 2020, [2022] SGHC 158
6. Timeline
| Date | Event |
|---|---|
| Dways was incorporated. | |
| Irene became a director of Dways. | |
| Irene ceased to be Dways’ director and the Lims ceased to be shareholders. | |
| Irene caused $21,000 to be transferred from the UOB Account to her account. | |
| Dways commenced the Suit. | |
| Trial began. | |
| Trial concluded. | |
| Judgment reserved. |
7. Legal Issues
- Breach of Director's Duties
- Outcome: Irene found liable for certain unauthorized payments made without legitimate basis and/or in breach of her directors’ duties.
- Category: Substantive
- Conspiracy by Unlawful Means
- Outcome: The Lims found to have conspired to withdraw $21,000 from the UOB Account with intent to injure or damage Dways.
- Category: Substantive
- Defamation
- Outcome: Dways made out its case in defamation on the WhatsApp Messages, 1st Letter and 2nd Letter.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
- Account of Profits
9. Cause of Actions
- Breach of Director's Duties
- Conspiracy to Injure
- Defamation
10. Practice Areas
- Commercial Litigation
11. Industries
- Health and Wellness
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
- Nutritional Products
- Direct-Selling
- Multi-Tier Compensation Scheme
- Director's Duties
- Misappropriation
- Defamation
- Shareholders’ Entitlement
- Disputed Payments
15.2 Keywords
- director duties
- conspiracy
- defamation
- nutritional products
- Singapore
- High Court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Fiduciary Duties | 70 |
| Defamation | 70 |
| Conspiracy by Unlawful Means | 65 |
| Corporate Law | 60 |
| Company Law | 60 |
| Torts | 50 |
| Negligence | 30 |
16. Subjects
- Company Law
- Tort Law
- Defamation Law