Friday, 5 October 2012

Singapore: company law reform - an update

Five years ago this month the Ministry of Finance appointed a steering committee to review the Companies Act 1967. The committee's final report was published last April and contained 217 recommendations relating to directors, shareholder rights, capital maintenance, accounts, company administration and charges: see here (pdf). The Ministry of Finance consulted on these recommendations and earlier this month the outcome of this consultation was published: see here (pdf).

The great majority of the committee's recommendations have been adopted. For example, the Ministry of Finance has accepted the committee's view that corporate directorships should not be introduced in Singapore and that the Act should contain an express provision providing that by ordinary resolution a private company director can be removed from office. MOF has also agreed with the committee's view that it would not be desirable to codify exhaustively directors' duties and that public companies should be able to issue non-voting shares and shares with multiple votes. A draft of the Bill to amend the 1967 Act is planned for publication early next year.

No comments: