Further to our blog dated 30 September 2015 in which we reported on the first phase of the reforms introduced in July 2015 to The Singapore Act in connection with The Companies (Amendment) Bill 2014 we now summarise the second phase below, which came into effect on the 3 January 2016:-
- No maximum age limited for directors. The approval from shareholders for the appointment of a person who is seventy or above has now been done away with.
- Disclosures of conflict of interests are extended not only to directors and shareholders, but will now also include CEO’s.
- Debarment regime. Directors and secretaries who do not adhere to filing requirements can be debarred from accepting any new appointments until the default has been rectified.
- Multiple proxy regime for indirect investors. Previously a member could only appoint up to two proxies.
- Liberalisation of Electronic transmission of notices and documents. The procedures have been greatly reduced and made simpler.
- Removal of one share, one vote restriction. Public companies can now issue shares with different voting rights.
- Directors, CEO’s and Secretaries will now be allowed to report an alternative address to their residential address as long as it satisfies certain legal conditions.
- Memorandum and articles of association has now been merged into a single document called the constitution.
These are only some of the amendments which also included greater clarification on Strike-off and indemnification of directors.
It is hoped that the changes will mean a reduction in compliance burden for companies.