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Navigating the Maze: Making Sense of Equitable Compensation and Account of Profits for Breach of Fiduciary Duty

Yip Man & Goh Yihan

(2016) 28 SAcLJ 884

This article examines the main monetary remedies for breach of fiduciary duty under Singapore law: equitable compensation and account of profits. It focuses on the role as well as the operation of causation in these two monetary remedies for breach of fiduciary duty. It suggests that studying the account of profits and equitable compensation side-by-side illuminates the proper questions that should be asked. By considering the fundamental tenets of the fiduciary doctrine as well as recent case law developments, we argue that relevant considerations for crafting appropriate remedial principles include scope of duty, deterrence, proportional consequences and good faith. Part of our discussion also examines the structural differences in the analysis of the two remedies under current law, and attempts to rationalise the differences.