20 June 2011
The Ministry of Finance and the Accounting and Corporate Regulatory Authority (ACRA) have called for public feedback on the review of the Companies Act, as well as on the Regulatory Framework for Foreign Entities.
In its review, the Steering Committee, set up by MOF in October 2007, recommended that the Companies Act should contain core company law, whilst provisions relating to specific types of companies (e.g. foreign companies) should be in legislation specifically dealing with such entities.
Some recommendations include introducing small company criteria to help them save on audit costs. There are also proposals for public companies to issue non-voting and multiple vote shares. There is no intent for any significant widening of the scope of regulation of foreign entities. The proposed standalone legislation will not regulate the operations of subsidiaries (incorporated in Singapore) of foreign companies, which will continue to be regulated under the Companies Act.
On the Regulatory Framework for Foreign Entities, the recommendations by ACRA include streamlining the requirements and procedures of the registration process of foreign entities.
The consultation is open from 20 June to 16 September 2011. Full details can be found at: http://app.mof.gov.sg/pc_coact_2011.aspx
Source: Ministry of Finance