Phase 1 - List of key amendments to be implemented in July 2015
| S/N | Key Amendments | Section number in Companies (Amendment) Act 2014 |
|---|---|---|
| (a) |
Shareholders’ approval not required for payment of compensation up to a year’s emoluments to executive director for termination of his employment. |
Section 86 |
| (b) |
Relaxing conditions for nominee directors to disclose information to nominating shareholders. |
Section 80 |
| (c) |
Empowering the Court hearing a winding-up application to order a buy-out instead of ordering winding-up. |
Section 150 |
| (d) | Expanding the scope of the statutory derivative action in section 216A to allow a complainant to apply to the court for leave to commence/intervene in arbitration. |
Section 146 |
| (e) |
Extending application of section 216A such that the statutory derivative action is applicable to Singapore-incorporated companies that are listed for quotation or quoted on a securities market, whether in Singapore or overseas. |
Section 146 |
| (f) | Allowing listed companies to make selected off-market acquisition of shares in itself in accordance with an agreement authorised by the company. | Section 45 |
| (g) | Removal of prohibition against financial assistance by private companies and introducing new exceptions to financial assistance. | Section 41 |
| (h) | Permitting use of capital to pay for share issues and buybacks for brokerage or commissions. | Section 35 |
| (i) | Allowing companies to issue shares for no consideration. | Section 35 |
| (j) | Consolidating provisions relating to auditor independence under the Accountants Act. | Section 9 |
| (k) | Introduction of small company audit exemption. | Section 128, 184 |
| (l) | Auditors of non-public interest company may resign upon giving notice to the company. Auditors of public interest companies and their subsidiaries to obtain ACRA’s consent for premature resignation. | Section 126 |
| (m) | Determination of requirement to prepare consolidated financial statements to be determined by financial reporting standards and not the Companies Act. | Section 112,113, 116 (and other related amendments) |
| (n) | Repeal of Companies Act requirement relating to alignment of financial year between parent and subsidiary. | Section 115 |
| (o) | Company secretaries of private companies need not be physically present at the company’s registered office. | Section 88 |
| (p) | Prescribing the requirements of a company secretary of a public company in regulations. | Section 88 |
| (q) | Abolition of transitional arrangements for share warrants. | Section 34 |
| (r) | Update limit on preferential payments to employees of insolvent companies. | Section 151 |
Click here for details of selected key amendments to be implemented in Phase 1.
