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.