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The House of Lords has delivered an important decision on the measure of damages for fraudulent misrepresentation. In Smith New Court Securities v Citibank, Smith New Court (SNC) was induced by a Citibank employee's fraudulent misrepresentation to buy shares in Ferranti from Citibank. It was subsequently discovered that a separate fraud involving fictitious contracts had been perpetrated on Ferranti designed to bolster its apparent profitability. On discovery of the second fraud, Ferranti's share price crashed and SNC eventually sold the shares at a heavy loss.

The revised provisions of the Swiss Code of Obligations (CO) regarding joint stock companies have improved the legal position of 'participants'. A 'participant' is the holder of participation certificates, which are part of the participation capital and have a par value.

The Singapore Stock Exchange introduced a new Chapter 9A to its Listing Manual. The new provisions apply to transactions between:

In November 1996, the Consumer Council published a Competition Policy Report urging the government to enact competition laws on collusive agreements, abuse of dominant position, abuse of collective dominance and control of markets through mergers and acquisitions. The report was the first of its kind in Hong Kong, which at present does not have any laws governing monopolies, cartel-like supply structures and other anti-competitive practices.

The landmark Provisional Regulations on the Administration of Qualifications of Domestic and Foreign Securities Institutions Dealing in Foreign Investment Shares became effective on December 1 1996. The regulations aim to standardize the qualifications of domestic and foreign securities institutions, such as brokerages and underwriters, that deal in foreign investment shares listed on the Chinese market and domestic securities institutions that deal in foreign investment shares listed outside China.

From November 1 1996, the Ghana Stock Exchange adopted new rules establishing the Securities Clearing and Settlement House (SCSH), which serves as a centralized clearing and settlement facility for stock exchange trades. The SCSH is run on a day-to-day basis by the managing director of the stock exchange. Policy for the SCSH is set by the Stock Exchange Council.

US buy-out specialist Kohlberg Kravis Roberts (KKR) agreed to pay US$1.05 billion for about 90% of the shares of US electrical equipment company Amphenol.

Cravath, Swaine & Moore, New York, is representing the US drugstore chain Revco in its acquisition by rival CVS. The US$2.8 billion stock swap merger will mean CVS becomes the US's second largest drugstore chain by sales.The team of Cravath lawyers comprises corporate partners Alan Stephenson, Philip Gelston and Richard Hall, assisted by corporate associates Caroline Gottschalk, Andrew Woeber, Richard Cundiff and Andrew Pitts. Partner Michael Schler and associate Craig McCracken are advising on tax law, while senior attorney Henry Morgenbesser and associate Scott Price are handling employee benefits issues. Also advising is senior attorney Jeffrey Smith, specializing in environmental law, and special antitrust counsel is Louis Sernoff from Baker & Hostetler, Washington DC.

Competition is intensifying in the emerging markets of south-east Asia. Law firms are working hard to keep up with the growth and development of the economies. Paul Lee reports

The latest offshore exchange to open will be of particular interest to mutual funds formed but not listed in the Caribbean tax-free jurisdiction. By Chris Narborough and Andrew Kidd of Truman Bodden & Company, Grand Cayman