Will a private limited company been effected if sole proprioter company is sued in singapore?

Question

Should this private company to appoint more directors/shareholders to avoid beeing effected during this period?

Assuming that :
Company A: Sole Proprioter
Company B: Exempt Private Limited Companies with the only same director & shareholders as company A
Company C: Exempt Private Limited Companies with 2 directors/shareholders with one of them is also owner of company A.
In the case of legal action, company A which is the sole proprioter company being sued, will this effect company B and company C?
How does it effect if so? and is there any ways to avoid these? Please advice.
Thanks a lot..

Answer 1

A sole-proprietor is a sole-proprietor (an individual), a company is a company incorporated under the Companies Act, Cap. 50. There is no such entity as a sole proprietor company. I shall take your Company A to mean entity A which is a sole-proprietorship. If the sole-proprietor Mr A gets sued, it may affect the EPCs B and C. Since Mr A doesn't enjoy limited liability, the Official Assignee or the creditors can make Mr A sell his shares in companies B and C (if they're worth anything) since the shares form part of his assets, and distribute the proceeds to the creditors. In so doing, B and C may end up with a different shareholder(s) who may or may not get along with the other existing shareholders. To avoid this, Mr A might consider selling his shares to someone of his choice (and the choice of the other shareholders) before the creditors come for him.