PART 3A | CONTROL OF DESIGNATED ENTITIES |
[Act 20 of 2024 wef 01/04/2025] | Extraterritorial application of this Part |
21A.—(1) Except where otherwise expressly provided, this Part applies to, and in relation to —| (a) | all individuals, whether resident in Singapore or not and whether citizens of Singapore or not; and | | (b) | all bodies corporate or unincorporate, whether incorporated, formed, established, or carrying on business in Singapore or not. |
| (2) Every person who, outside Singapore, commits an act or omission that, if committed in Singapore, would constitute an offence under this Part, is deemed to commit the act or omission in Singapore and may be proceeded against, charged, tried and punished accordingly. [Act 20 of 2024 wef 01/04/2025] |
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| Interpretation of this Part |
21B.—(1) In this Part —“5% controller”, in relation to a designated entity, means a person who, alone or together with that person’s associates —| (a) | holds 5% or more, but less than 25%, of the total equity interests in that designated entity; or | | (b) | is in a position to control 5% or more, but less than 25%, of the voting power in that designated entity; |
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“25% controller”, in relation to a designated entity, means a person who, alone or together with that person’s associates —| (a) | holds 25% or more, but less than 50%, of the total equity interests in that designated entity; or | | (b) | is in a position to control 25% or more, but less than 50%, of the voting power in that designated entity; |
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“50% controller”, in relation to a designated entity, means a person who, alone or together with that person’s associates —| (a) | holds 50% or more, but less than 75%, of the total equity interests in that designated entity; or | | (b) | is in a position to control 50% or more, but less than 75%, of the voting power in that designated entity; |
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“75% controller”, in relation to a designated entity, means a person who, alone or together with that person’s associates —| (a) | holds 75% or more of the total equity interests in that designated entity; or | | (b) | is in a position to control 75% or more of the voting power in that designated entity; |
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“acquisition” includes an agreement to acquire, but does not include —| (a) | an acquisition by will or by operation of law; or | | (b) | an acquisition by way of enforcement of a loan security; |
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| “arrangement” includes any formal or informal scheme, arrangement or understanding, and any trust whether express or implied; |
“chief executive officer”, in relation to a designated entity or the trustee-manager of a designated entity, means an individual (by whatever name called) who —| (a) | is in the direct employment of, or acting for or by arrangement with, the designated entity or trustee-manager, as the case may be; and | | (b) | is principally responsible for the management and conduct of the business of the designated entity or trustee-manager, as the case may be, |
| and includes any individual for the time being performing all or any of the functions of a chief executive officer; |
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| “control” includes control as a result of, or by means of, any trust, agreement, arrangement, understanding or practice, whether or not having legal or equitable force and whether or not based on legal or equitable rights; |
| “decrease”, in relation to the holding of equity interests, includes a decrease to a point of nil; |
| “director” has the meaning given by section 4(1) of the Companies Act 1967; |
“equity interest” —| (a) | in relation to a corporation — means a voting share in that corporation; | | (b) | in relation to an entity other than a corporation — means any right or interest, whether legal or equitable, in that entity (by whatever name called) which gives the holder of that right or interest voting power in that entity; and | | (c) | in relation to a business trust — means a unit in that business trust; |
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| “increase”, in relation to the holding of equity interests, includes an increase from a starting point of nil; |
“indirect controller”, in relation to a designated entity, means any person, whether acting alone or together with any other person, and whether with or without holding equity interests or controlling the voting power in the designated entity —| (a) | whose directions, instructions or wishes —| (i) | the directors or other officers of the designated entity; or | | (ii) | the trustee-manager (in the case of a designated entity that is a business trust), |
| is accustomed or under an obligation, whether formal or informal, to act in accordance with; or |
| | (b) | who is in a position to determine the policy of the designated entity, |
| (c) | any person who is —| (i) | a director or other officer of the designated entity; or | | (ii) | the trustee-manager (in the case of a designated entity that is a business trust); or |
| | (d) | any person whose directions, instructions or wishes —| (i) | the directors or other officers of the designated entity; or | | (ii) | the trustee-manager (in the case of a designated entity that is a business trust), |
| is accustomed to act in accordance with by reason only that the acting is on advice given by the person in that person’s professional capacity; |
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| “limited liability partnership” has the meaning given by section 2(1) of the Limited Liability Partnerships Act 2005; |
| “liquidator” includes the Official Receiver when acting as the liquidator of a corporation; |
“officer”, in relation to a corporation, includes —| (a) | a director or secretary of, or a person employed in an executive capacity by, the corporation; | | (b) | any receiver or manager, or any receiver and manager, of any part of the undertaking of the corporation, appointed under a power contained in any instrument or by the General Division of the High Court or by creditors; | | (c) | any liquidator of the corporation appointed in a voluntary winding up or by the General Division of the High Court or by creditors; and | | (d) | any judicial manager of the corporation appointed under Part 7 of the Insolvency, Restructuring and Dissolution Act 2018; |
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| “Official Receiver” has the meaning given by section 2(1) of the Insolvency, Restructuring and Dissolution Act 2018; |
| “related corporation”, in relation to a corporation, means another corporation that is deemed under section 21D(2) to be related to that corporation; |
| “share”, in relation to a corporation, means a share in the share capital of the corporation and includes stock into which all or any of the share capital of the corporation has been converted; |
| “treasury share” has the meaning given by section 4(1) of the Companies Act 1967; |
| “unit” has the meaning given by section 2 of the Business Trusts Act 2004; |
| “unitholder” means a person who holds units in a business trust; |
| “unregistered company” has the meaning given by section 245(1) of the Insolvency, Restructuring and Dissolution Act 2018; |
| “voting share” has the meaning given by section 4(1) of the Companies Act 1967 but does not include a treasury share. |
(2) A reference in this Part to the control of a percentage of the voting power in a designated entity is to the control, whether direct or indirect, of that percentage of the total number of votes that might be cast in —| (a) | a general meeting of the designated entity; or | | (b) | in the case of a designated entity that is a business trust — a general meeting of the unitholders of the business trust. |
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| (3) In ascertaining a person’s control of the percentage of the total number of votes that might be cast at a general meeting mentioned in subsection (2), the number of votes that the person is entitled to cast at the meeting by reason of having been appointed a proxy or representative to vote at the meeting is to be disregarded. |
(4) In this Part —| (a) | a reference to the chairperson of a board of directors includes an individual (by whatever name called) acting in that capacity; | | (b) | a reference to the business or operations of an entity that is a business trust is to the business or operations (as the case may be) carried on by the trustee-manager of the business trust on behalf of the business trust; and | | (c) | a reference to a condition imposed by the Authority includes a condition added or varied by the Authority. [Act 20 of 2024 wef 01/04/2025] |
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| What holding an equity interest means |
21C.—(1) In this Part, a person holds an equity interest if the person —| (a) | has or is deemed to have an equity interest in accordance with subsections (2) to (8); or | | (b) | otherwise has a legal or equitable interest in that equity interest, |
| except for any interest prescribed under section 45 as an interest that is to be disregarded. |
| (2) Subject to subsection (3), a person has an equity interest if the person has authority (whether formal or informal, or express or implied) to dispose of, or to exercise control over the disposal of, that equity interest. |
| (3) It is immaterial that the authority of a person to dispose of, or to exercise control over the disposal of, the equity interest mentioned in subsection (2) is, or is capable of being made, subject to restraint or restriction. |
| (4) It is immaterial, for the purposes of determining whether a person has an equity interest, that the interest cannot be related to a particular share, an interest or a right that gives its holder voting power, or a unit of a business trust, as the case may be. |
(5) A person is deemed to have an equity interest if —| (a) | any property held in trust consists of or includes the equity interest; and | | (b) | the person knows, or has reasonable grounds for believing, that the person has an interest under that trust. |
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(6) A person is also deemed to have an equity interest if that person —| (a) | has entered into a contract to purchase the equity interest; | | (b) | has a right, otherwise than by reason of having an interest under a trust, to have the equity interest transferred to (or to the order of) that person, whether the right is exercisable presently or in the future and whether on the fulfilment of a condition or not; | | (c) | has the right to acquire the equity interest under an option, whether the right is exercisable presently or in the future and whether on the fulfilment of a condition or not; or | | (d) | is entitled (otherwise than by reason of having been appointed a proxy or representative) to vote at —| (i) | a general meeting of the designated entity; or | | (ii) | in the case of a designated entity that is a business trust — a general meeting of the unitholders of the business trust, |
| to exercise or control the exercise of a right attached to the equity interest, not being an equity interest in which that person has a legal or equitable interest. |
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| (7) A person is not to be deemed as not having an equity interest by reason only that the person has the equity interest jointly with another person. |
(8) An equity interest is not to be disregarded by reason only of —| (a) | its remoteness; | | (b) | the manner in which it arose; or | | (c) | the fact that the exercise of a right conferred by the equity interest is, or is capable of being made, subject to restraint or restriction. [Act 20 of 2024 wef 01/04/2025] |
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| Meanings of “associate”, “related corporation”, “subsidiary” and “holding company” |
21D.—(1) In this Part, a person (A) is an associate of another person (B) if —| (a) | A is the spouse, or a parent, step-parent or remoter lineal ancestor, or a son, stepson, daughter, stepdaughter or remoter issue, or a brother or sister, of B; | | (b) | A is a partner of B in a partnership or limited liability partnership; | | (c) | A is a corporation of which B is an officer; | | (d) | B is a corporation of which A is an officer; | | (e) | A and B are officers of the same corporation; | | (f) | A is an employee of B; | | (g) | B is an employee of A; | | (h) | A and B are employees of the same employer; | | (i) | A is the trustee of a discretionary trust where B (or another person who is an associate of B by virtue of any paragraph, except this paragraph and paragraphs (j) and (r)) benefits, or is capable (whether by exercise of a power of appointment or otherwise) of benefitting, under the trust, either directly or through interposed entities or trusts; | | (j) | B is the trustee of a discretionary trust where A (or another person who is an associate of A by virtue of any paragraph, except this paragraph and paragraphs (i) and (r)) benefits, or is capable (whether by exercise of a power of appointment or otherwise) of benefitting, under the trust, either directly or through interposed entities or trusts; | | (k) | A is a corporation whose directors are accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of B or, where B is a corporation, of the directors of B; | | (l) | B is a corporation whose directors are accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of A or, where A is a corporation, of the directors of A; | | (m) | A is a person who is accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of B or, where B is a corporation, of the directors of B; | | (n) | B is a person who is accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of A or, where A is a corporation, of the directors of A; | | (o) | A is a related corporation of B; | | (p) | A is a corporation in which B, alone or together with other associates of B as described in paragraphs (b) to (o), is in a position to control at least 20% of the voting power in A; | | (q) | B is a corporation in which A, alone or together with other associates of A as described in paragraphs (b) to (o), is in a position to control at least 20% of the voting power in B; | | (r) | A is a person with whom B enters, or proposes to enter, into an agreement or arrangement (whether oral or in writing and whether express or implied) that relates to any of the following matters:| (i) | A and B being in a position, by acting together, to control any of the voting power in a designated entity; | | (ii) | A and B acting together with respect to the acquisition, holding or disposal of equity interests or other interests in a designated entity; | | (iii) | the power of A and B, by acting together, to appoint or remove —| (A) | a director of a designated entity; or | | (B) | in the case of a designated entity that is a business trust — a director of the trustee-manager of the designated entity; |
| | (iv) | the situation where one or more of the directors of —| (A) | a designated entity; or | | (B) | in the case of a designated entity that is a business trust — the trustee-manager of the business trust, |
| are accustomed or under an obligation (whether formal or informal) to act in accordance with the directions, instructions or wishes of A and B acting together; |
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| | (s) | A controls more than half of the voting power of a holding company of B; | | (t) | B controls more than half of the voting power of a holding company of A; or | | (u) | A is related to B in such other manner as may be prescribed by regulations made under section 45. |
(2) A corporation (A) and another corporation (B) are deemed to be related to each other for the purposes of this section where A is —| (a) | the holding company of B; | | (b) | a subsidiary of B; or | | (c) | a subsidiary of the holding company of B. |
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(3) For the purposes of subsection (2), a corporation (A) is, subject to subsection (5), deemed to be a subsidiary of another corporation (B) if —| (a) | B controls the composition of the board of directors of A; | | (b) | B controls more than half of the voting power of A; or | | (c) | A is a subsidiary of any corporation which is B’s subsidiary. |
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(4) For the purposes of subsection (3), the composition of A’s board of directors is deemed to be controlled by B if B, by the exercise of a power exercisable by it without the consent or concurrence of any other person, can appoint or remove all or a majority of the directors, and for the purposes of this provision, B is deemed to have power to make such an appointment if —| (a) | a person cannot be appointed as a director without the exercise in the person’s favour by B of such a power; or | | (b) | a person’s appointment as a director follows necessarily from that person being a director or other officer of B. |
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(5) In determining whether one corporation (A) is the subsidiary of another corporation (B) —| (a) | any shares held or power exercisable by B in a fiduciary capacity is treated as not held or exercisable by B; | | (b) | subject to paragraphs (c) and (d), any shares held or power exercisable —| (i) | by any person as a nominee for B (except where B is concerned only in a fiduciary capacity); or | | (ii) | by, or by a nominee for, a subsidiary of B, not being a subsidiary which is concerned only in a fiduciary capacity, |
| is to be treated as being held or exercisable by B; |
| | (c) | any shares held or power exercisable by any person by virtue of the provisions of any debentures of A, or of a trust deed for securing any issue of such debentures, is to be disregarded; and | | (d) | any shares held or power exercisable by, or by a nominee for, B or its subsidiary (not being held or exercisable as mentioned in paragraph (c)) is to be treated as not held or exercisable by B if the ordinary business of B or its subsidiary (as the case may be) includes the lending of money and the shares are so held or power is so exercisable by way of security only for the purposes of a transaction entered into in the ordinary course of that business. |
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| (6) A reference in this section to the holding company of a corporation is to a corporation of which the last mentioned corporation is a subsidiary. |
| (7) For the purposes of this section, the Depository is not to be regarded as a holding company of a corporation by reason only of the shares it holds in that corporation as a bare trustee. |
| (8) Regulations made under section 45 may provide that any person or class of persons are not associates of another person for the purposes of any provision of this Part. |
(9) In this section —| “Depository” has the meaning given by section 81SF of the Securities and Futures Act 2001; |
| “officer”, in relation to a corporation, means a director or secretary of, or any person employed in an executive capacity by, the corporation. [Act 20 of 2024 wef 01/04/2025] |
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| Designation of designated operating entities and designated equity interest holders |
21E.—(1) The Authority may by notification in the Gazette —| (a) | designate an entity that provides any essential transport service in Singapore, or any business trust through which any essential transport service is provided in Singapore, as a designated operating entity; or | | (b) | designate an entity that holds any equity interest in a designated operating entity as a designated equity interest holder, |
| if the Authority considers that the designation is necessary in the public interest. |
| (2) The Authority must inform the Minister of the Authority’s decision to designate an entity before publishing the notification under subsection (1) but the failure to do so does not invalidate the designation. |
(3) The notification under subsection (1) —| (a) | must specify the date on which the designation takes effect; and | | (b) | must be published in the Gazette at least 14 days before the date that the designation takes effect. |
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| (4) The Authority may by notification in the Gazette cancel a designation at any time. [Act 20 of 2024 wef 01/04/2025] |
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| Division 2 — Control of designated entities |
| Notice to Authority by 5% controller of designated entity |
21F.—(1) If a person becomes a 5% controller of a designated entity on or after the effective designation date as a result of an increase in the holding of equity interest, or in the voting power controlled, by that person or any associate of that person, that person must within 7 days after becoming the 5% controller give written notice to the Authority of that fact.| (2) Any person who contravenes subsection (1) shall be guilty of an offence. |
(3) In any proceedings for a contravention of subsection (1), it is a defence for the accused to prove that the accused —| (a) | was not aware of the contravention when it occurred; and | | (b) | notified the Authority of the contravention within a period of 14 days after becoming aware of the contravention. |
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(4) In any proceedings for a contravention of subsection (1), it is also a defence for the accused to prove that, though the accused was aware of the contravention —| (a) | the contravention occurred as a result of an increase in the holding of equity interest, or in the voting power controlled, by any of the associates of the accused, in the designated entity; | | (b) | the accused has no agreement or arrangement (whether oral or in writing and whether express or implied) with that associate with respect to the acquisition, holding or disposal of equity interests or other interests, or under which they act together in exercising their voting power, in relation to the designated entity; and | | (c) | the accused notified the Authority of the contravention within a period of 7 days after the contravention. |
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| (5) Except as provided in subsections (3) and (4), it is not a defence in any proceedings for a contravention of subsection (1) to prove that the accused did not intend to or did not knowingly contravene subsection (1). [Act 20 of 2024 wef 01/04/2025] |
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| Approvals of Authority in relation to equity interests and control of voting power in designated entities in certain cases |
21G.—(1) Except with the prior written approval of the Authority, a person must not —| (a) | as a result of an increase in the holding of equity interest, or in the voting power controlled, by that person or any associate of that person, become a 25% controller, 50% controller or 75% controller of a designated entity on or after the effective designation date; or | | (b) | as a result of a decrease in the holding of equity interest, or in the voting power controlled, by that person or any associate of that person, cease to be a 25% controller, 50% controller or 75% controller of a designated entity on or after the effective designation date. |
| (2) Subsection (1) does not apply if the transaction through which a person becomes a 25% controller, 50% controller or 75% controller, or ceases to be a 25% controller, 50% controller or 75% controller, is entered into before the effective designation date. |
| (3) A person must not become an indirect controller of a designated entity on or after the effective designation date unless the person has obtained the prior written approval of the Authority. |
(4) The Authority may approve an application under subsection (1)(a) or (3) if the Authority is satisfied that —| (a) | the person who is to become a 25% controller, 50% controller, 75% controller or indirect controller of a designated entity and every associate of that person known to the Authority, are fit and proper persons; | | (b) | the essential transport services provided by the following (whichever is applicable) will continue to be safe, reliable and efficient:| (i) | the designated operating entity of which the person is to become a 25% controller, 50% controller, 75% controller or indirect controller; | | (ii) | the trustee-manager of the designated operating entity of which the person is to become a 25% controller, 50% controller, 75% controller or indirect controller; | | (iii) | in the case where the person is to become a 25% controller, 50% controller, 75% controller or indirect controller of a designated equity interest holder — the designated operating entity, or the trustee-manager of the designated operating entity, in relation to which the designated equity interest holder is so designated; |
| | (c) | having regard to the influence of the person mentioned in paragraph (a) and every associate of that person known to the Authority, the following requirements are met:| (i) | if the designated entity is a designated operating entity — the designated operating entity or, if the designated operating entity is a business trust, its trustee-manager, will continue to conduct the business of the designated operating entity prudently and comply with the provisions of this Act; | | (ii) | if the designated entity is a designated equity interest holder —| (A) | the designated operating entity in respect of which the designated equity interest holder is so designated or, if that designated operating entity is a business trust, its trustee-manager, will continue to conduct the business of the designated operating entity prudently and comply with the provisions of this Act; and | | (B) | the designated equity interest holder or, if the designated equity interest holder is a business trust, its trustee-manager, will continue to comply with the provisions of this Act; and |
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| | (d) | it is in the public interest to do so. |
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(5) The Authority may approve an application under subsection (1)(b) if the Authority is satisfied that —| (a) | the essential transport services provided by the following (whichever is applicable) will continue to be safe, reliable and efficient:| (i) | the designated operating entity of which the person is a 25% controller, 50% controller or 75% controller; | | (ii) | the trustee‑manager of the designated operating entity of which the person is a 25% controller, 50% controller or 75% controller; | | (iii) | in the case where the person is a 25% controller, 50% controller or 75% controller of a designated equity interest holder — the designated operating entity, or the trustee-manager of the designated operating entity, in relation to which the designated equity interest holder is so designated; |
| | (b) | in the case where the person is a 25% controller, 50% controller or 75% controller of a designated operating entity — the designated operating entity or, if the designated operating entity is a business trust, its trustee-manager, will continue to conduct the business of the designated operating entity prudently and comply with the provisions of this Act; | | (c) | in the case where the person is a 25% controller, 50% controller or 75% controller of a designated equity interest holder —| (i) | the designated operating entity in respect of which the designated equity interest holder is so designated or, if that designated operating entity is a business trust, its trustee-manager, will continue to conduct the business of the designated operating entity prudently and comply with the provisions of this Act; and | | (ii) | the designated equity interest holder or, if the designated equity interest holder is a business trust, its trustee-manager, will continue to comply with the provisions of this Act; and |
| | (d) | it is in the public interest to do so. |
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(6) The Authority may —| (a) | grant an approval under this section subject to any conditions that the Authority considers appropriate to impose; and | | (b) | at any time add to, vary or revoke any condition so imposed. |
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| (7) Any condition imposed by the Authority under subsection (6) has effect despite the provisions of any other written law or anything contained in the memorandum or articles of association, limited liability partnership agreement, partnership contract, trust deed or other constitution of the designated entity in relation to which the application for approval under subsection (1) or (3) is made. |
| (8) Any person who contravenes subsection (1) or (3), or who fails to comply with any condition imposed under subsection (6), shall be guilty of an offence. |
(9) In any proceedings for a contravention of subsection (1), it is a defence for the accused to prove that —| (a) | the accused was not aware of the contravention when it occurred; | | (b) | the accused notified the Authority of the contravention within a period of 14 days after becoming aware of the contravention; and | | (c) | if the Authority issued any direction under section 21M relating to the contravention —| (i) | the accused complied with the direction within the period determined by the Authority under that section; or | | (ii) | the period determined by the Authority under that section for compliance with the direction has not expired. |
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(10) In any proceedings for a contravention of subsection (1), it is also a defence for the accused to prove that even though the accused was aware of the contravention —| (a) | the contravention occurred as a result of an increase or a decrease in the holding of equity interest, or in the voting power controlled, by any of the associates of the accused, in the designated entity; | | (b) | the accused has no agreement or arrangement (whether oral or in writing and whether express or implied) with that associate with respect to the acquisition, holding or disposal of equity interests or other interests, or under which they act together in exercising their voting power, in relation to the designated entity; | | (c) | the accused notified the Authority of the contravention within a period of 7 days after the contravention; and | | (d) | if the Authority issued any direction under section 21M relating to the contravention —| (i) | the accused complied with the direction within the period determined by the Authority under that section; or | | (ii) | the period determined by the Authority under that section for compliance with the direction has not expired. |
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(11) In any proceedings for a contravention of subsection (3), it is a defence for the accused to prove that —| (a) | the accused was not aware of the contravention when it occurred; | | (b) | the accused notified the Authority of the contravention within a period of 14 days after the contravention; and | | (c) | if the Authority issued any direction under section 21M relating to the contravention —| (i) | the accused complied with the direction within the period determined by the Authority under that section; or | | (ii) | the period determined by the Authority under that section for compliance with the direction has not expired. |
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| (12) Except as provided in subsections (9), (10) and (11), it is not a defence in any proceedings for a contravention of subsection (1) or (3) to prove that the accused did not intend to or did not knowingly contravene subsection (1) or (3). [Act 20 of 2024 wef 01/04/2025] |
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| Appointment and removal of chief executive officer, chairperson, director, etc., of designated entity |
21H.—(1) A licensee-designated operating entity must not, on or after the effective designation date, appoint or remove an individual as its chief executive officer, the chairperson of its board of directors or any of its directors, unless the licensee-designated operating entity has obtained the prior written approval of the Authority.(2) Each of following persons must not, on or after the effective designation date, appoint or remove an individual as its chief executive officer, or the chairperson of its board of directors unless the person has obtained the prior written approval of the Authority:| (a) | a non-licensee-designated operating entity or, in the case of a non-licensee-designated operating entity that is a business trust, its trustee-manager; | | (b) | a designated equity interest holder or, in the case of a designated equity interest holder that is a business trust, its trustee-manager. |
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| (3) A person must not, on or after the effective designation date, be appointed as a manager of, or become a partner in, a limited liability partnership that is a designated entity unless the designated entity has obtained the prior written approval of the Authority. |
| (4) A person must not, or after the effective designation date, become a partner in a partnership that is a designated entity unless the person has obtained the prior written approval of the Authority. |
(5) The Authority may —| (a) | grant an approval under this section subject to any conditions that the Authority considers appropriate to impose; and | | (b) | at any time add to, vary or revoke any condition so imposed. |
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| (6) Any person who contravenes subsection (1), (2), (3) or (4), or who fails to comply with any condition imposed under subsection (5), shall be guilty of an offence. |
| (7) This section has effect despite the provisions of any other written law or anything contained in the memorandum or articles of association, limited liability partnership agreement, partnership contract, trust deed or other constitution, of the designated entity or the trustee-manager of the designated entity in relation to which the application for approval under subsection (1), (2), (3) or (4) is made. |
(8) In this section —| (a) | a reference to a “licensee-designated operating entity” is to a designated operating entity that is also a licensee; and | | (b) | a reference to a “non-licensee-designated operating entity” is to a designated operating entity that is not a licensee-designated operating entity. [Act 20 of 2024 wef 01/04/2025] |
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| Acquisition of business of designated operating entity as going concern |
21I.—(1) A person must not, on or after the effective designation date, acquire as a going concern, the designated operating entity’s business of providing any essential transport service (or any part of such business) unless —| (a) | the person; and | | (b) | the designated operating entity or, if the designated operating entity is a business trust, its trustee-manager, |
| have obtained the prior written approval of the Authority. |
(2) An application for the Authority’s approval under subsection (1) must be —| (a) | made jointly by the persons mentioned in subsection (1)(a) and (b); and | | (b) | made in such form and manner as the Authority may specify. |
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(3) The Authority may approve an application under subsection (1) if the Authority is satisfied that —| (a) | the person acquiring the business or part is a fit and proper person; | | (b) | after the acquisition, the essential transport service mentioned in subsection (1) will continue to be safe, reliable and efficient; | | (c) | in the case where after the acquisition, the designated operating entity continues to carry on part of the business mentioned in subsection (1) — the designated operating entity or, if the designated operating entity is a business trust, its trustee-manager, will continue to conduct the business of the designated operating entity prudently and comply with the provisions of this Act; and | | (d) | it is in the public interest to do so. |
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(4) The Authority may —| (a) | grant an approval under this section subject to any conditions that the Authority considers appropriate to impose; and | | (b) | at any time add to, vary or revoke any condition so imposed. |
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| (5) This section has effect despite the provisions of any other written law or anything contained in the memorandum or articles of association, limited liability partnership agreement, partnership contract, deed or other constitution, of the designated operating entity. |
| (6) Any person who contravenes subsection (1), or who fails to comply with any condition imposed under subsection (4), shall be guilty of an offence. [Act 20 of 2024 wef 01/04/2025] |
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| Occurrence of certain events |
21J.—(1) A designated entity or, in the case of a designated entity that is a business trust, its trustee-manager, must notify the Authority of any of the following agreements at least 14 days before entering into the agreement:| (a) | in the case of a designated entity that is a designated operating entity — an agreement for the outsourcing of a material function performed by the designated operating entity in the provision of any essential transport service; | | (b) | any agreement prescribed under section 45. |
| (2) Subsection (1) does not apply in relation to any agreement entered into by a designated entity before the expiry of 14 days after the effective designation date. |
(3) A designated entity or, in the case of a designated entity that is a business trust, its trustee-manager, must notify the Authority of the occurrence of any of the following events within 7 days after becoming aware of the occurrence:| (a) | in the case of a designated entity that is a designated operating entity —| (i) | any civil or criminal proceedings (whether in Singapore or elsewhere) instituted against the designated entity or, if the designated entity is a business trust, its trustee-manager, that materially impedes or impairs the operations of the designated entity carried out in the course of providing any essential transport service; or | | (ii) | any other event or any irregularity that materially impedes or impairs the operations of the designated entity carried out in the course of providing any essential transport service; |
| | (b) | the designated entity or, if the designated entity is a business trust, its trustee-manager, being or becoming, or being likely to become, insolvent; | | (c) | the designated entity or, if the designated entity is a business trust, its trustee-manager —| (i) | being wound up or subject to any receivership or judicial management order; or | | (ii) | entering into a compromise or scheme of arrangement; |
| | (d) | in the case of a designated entity that is a business trust — the business trust being wound up or deregistered or the making of an application for the deregistration of the business trust; | | (e) | any other event prescribed under section 45. |
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| (4) Subsection (3) does not apply where the designated entity or trustee-manager (as the case may be) becomes aware of the occurrence of the event before the effective designation date. |
| (5) The Authority may, upon receiving a notification under subsection (1) or (3) in relation to an agreement or the occurrence of an event, direct the designated entity or trustee-manager in question to submit to the Authority any information or document relating to the agreement or event within the period specified by the Authority. |
(6) Any person who —| (a) | contravenes subsection (1) or (3); | | (b) | fails to comply with a direction of the Authority under subsection (5); or | | (c) | submits any false or misleading information or document in compliance or purported compliance with a direction of the Authority under subsection (5), |
| shall be guilty of an offence. |
[Act 20 of 2024 wef 01/04/2025] |
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| Duty of designated entity or trustee-manager to report changes of equity and control of certain persons |
21K.—(1) If a designated entity or, in the case of a designated entity that is a business trust, its trustee-manager, becomes aware that —| (a) | a person has, on or after the effective designation date, become a 5% controller, 25% controller, 50% controller or 75% controller of the designated entity; | | (b) | a 25% controller, 50% controller or 75% controller of the designated entity has, on or after the effective designation date, ceased to be a 25% controller, 50% controller or 75% controller (as the case may be) of the designated entity; | | (c) | a person has, on or after the effective designation date, become an indirect controller of the designated entity; or | | (d) | in a case where the designated entity is a designated operating entity — a person has, on or after the effective designation date, acquired, as a going concern, the designated operating entity’s business of providing any essential transport service (or any part of such business), |
| the designated entity or trustee-manager (as the case may be) must inform the Authority in writing within 7 days after becoming aware of that fact. |
| (2) Any person who contravenes subsection (1) shall be guilty of an offence. [Act 20 of 2024 wef 01/04/2025] |
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| Restrictions on voluntary winding up, etc., of designated operating entities |
21L.—(1) Despite any other written law —| (a) | a designated operating entity that is a corporation or limited liability partnership cannot be wound up voluntarily without the consent of the Authority; | | (b) | a designated operating entity that is a partnership cannot be dissolved —| (i) | by a partner giving notice to the other partner or partners (as the case may be) of the partner’s intention to dissolve the partnership; or | | (ii) | by the partners agreeing to dissolve the partnership, |
| without the consent of the Authority; |
| | (c) | a designated operating entity that is a business trust cannot be wound up voluntarily without the consent of the Authority; | | (d) | a person must not make any application under section 210 of the Companies Act 1967 or section 71 of the Insolvency, Restructuring and Dissolution Act 2018 in relation to a designated operating entity that is a corporation, unless that person has served 14 days’ notice in writing of that person’s intention to make that application on the Authority; | | (e) | no judicial management order under Part 7 of the Insolvency, Restructuring and Dissolution Act 2018 may be made in relation to a designated operating entity that is a corporation without the consent of the Authority; | | (f) | no interim judicial manager or judicial manager may be appointed under section 94 of the Insolvency, Restructuring and Dissolution Act 2018 in respect of a designated operating entity that is a corporation without the consent of the Authority; | | (g) | a person must not take any step to enforce any security over —| (i) | the property of a designated operating entity; or | | (ii) | in the case of a designated operating entity that is a business trust — the trust property of the trust, |
| unless that person has served 14 days’ notice in writing of that person’s intention to take that step on the Authority; and |
| | (h) | a person must not take any step to execute or enforce any judgment or order of court obtained against a designated operating entity unless that person has served 14 days’ notice in writing of that person’s intention to take that step on the Authority. |
(2) The Authority must be a party to —| (a) | any proceedings relating to the making of an order under section 210 of the Companies Act 1967 or section 71 of the Insolvency, Restructuring and Dissolution Act 2018 in relation to a designated operating entity that is a corporation; | | (b) | any proceedings relating to the making of a judicial management order under Part 7 of the Insolvency, Restructuring and Dissolution Act 2018 in relation to a designated operating entity that is a corporation; | | (c) | any proceedings under the Insolvency, Restructuring and Dissolution Act 2018 relating to the winding up of the affairs of a designated operating entity that is a company or an unregistered company; | | (d) | any proceedings under the Limited Liability Partnerships Act 2005 relating to the winding up of the affairs of a designated operating entity that is a limited liability partnership; and | | (e) | any proceedings before any court for the dissolution, winding up or termination (as the case may be) of any designated operating entity that is an entity not mentioned in paragraph (c) or (d). |
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| (3) A court must, when deciding any proceedings mentioned in subsection (2), take into consideration any representations made by the Minister in those proceedings. [Act 20 of 2024 wef 01/04/2025] |
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| Division 3 — Remedial directions |
| Remedial directions relating to section 21G |
21M.—(1) Subsection (2), (3) or (4) applies if —| (a) | the Authority is satisfied that a person (called in this section a defaulter) —| (i) | has contravened section 21G(1) or (3) or failed to comply with a condition imposed on that person under section 21G(7); or | | (ii) | has provided false or misleading information or documents in connection with an application for approval under section 21G(1) or (3); or |
| | (b) | the Authority would not have granted its approval under section 21G(1) or (3) had it been aware, at the time of approval, of circumstances relevant to a defaulter’s application for such approval. |
(2) Where the defaulter is a 25% controller, 50% controller or 75% controller of the designated entity, the Authority may do any one or more of the following:| (a) | direct the defaulter to take such steps as are necessary, within the period specified by the Authority, to cease to be a 25% controller, 50% controller or 75% controller (as the case may be) of the designated entity; | | (b) | direct the transfer or disposal of all or any of the equity interests in the designated entity held by the defaulter or any of the defaulter’s associates (called in this section and section 21N the section 21M(2) equity interests), within such time and subject to such conditions as the Authority considers appropriate; | | (c) | restrict or prohibit the transfer or disposal of all or any of the section 21M(2) equity interests, subject to any conditions that the Authority considers appropriate; | | (d) | make any other direction that the Authority considers appropriate. |
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(3) Where, as a result of a person (called in this subsection the transferee) acquiring any equity interests from the defaulter who is a 25% controller, 50% controller or 75% controller of the designated entity (called in this section and section 21N the section 21M(3) equity interests), the defaulter ceases to be a 25% controller, 50% controller or 75% controller (as the case may be), the Authority may do one or more of the following:| (a) | direct the transferee to take such steps as are necessary, within the period specified by the Authority, to cease to hold all or any of the section 21M(3) equity interests; | | (b) | direct the defaulter to take such steps as are necessary within the period specified by the Authority, to resume being a 25% controller, 50% controller or 75% controller (as the case may be) of the designated entity, as the case may be; | | (c) | direct the acquisition, transfer or disposal of all or any of the section 21M(3) equity interests within such time and subject to such conditions as the Authority considers appropriate; | | (d) | restrict or prohibit the transfer or disposal of all or any of the section 21M(3) equity interests, subject to any conditions that the Authority considers appropriate; | | (e) | make any other direction that the Authority considers appropriate. |
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(4) Where the defaulter is an indirect controller of the designated entity, the Authority may do one or both of the following:| (a) | direct the defaulter, or direct the designated entity or, if the designated entity is a business trust, its trustee-manager, to take such steps as are necessary, within the period specified by the Authority, to cease to be such an indirect controller or to cause the defaulter to cease to be such an indirect controller; | | (b) | make any other direction that the Authority considers appropriate. [Act 20 of 2024 wef 01/04/2025] |
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| Effect of remedial directions issued under section 21M, etc. |
21N.—(1) Any direction issued to a person, and any condition imposed, under section 21M(2) or (3) take effect, despite —| (a) | any other written law; | | (b) | anything in any listing rules as defined in section 2(1) of the Securities and Futures Act 2001; and | | (c) | the provisions of the memorandum or articles of association, limited liability partnership agreement, partnership contract, trust deed or other constitution of the designated entity in question. |
(2) Without affecting subsection (1), where any direction is issued under section 21M(2) or (3), then, until the direction is carried out or is suspended or revoked —| (a) | the voting rights in respect of the section 21M(2) equity interests or section 21M(3) equity interests that are subject to the direction are not exercisable, unless the Authority expressly permits those rights to be exercised; | | (b) | the voting power that the person to whom the direction is issued controls, whether alone or together with that person’s associates, in the designated entity is not exercisable, unless the Authority expressly permits that power to be exercised; | | (c) | no equity interest in the designated entity is to be issued or offered (whether by way of dividends or otherwise) in respect of the section 21M(2) equity interests or section 21M(3) equity interests that are subject to the direction, unless the Authority expressly permits that issue or offer; and | | (d) | no amount may be paid (whether by way of profits, income or otherwise) in respect of the section 21M(2) equity interests or section 21M(3) equity interests that are subject to the direction, unless the Authority expressly authorises such payment. |
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| (3) Subsection (2)(d) does not apply in the event of the winding up, dissolution, termination or deregistration of the designated entity. [Act 20 of 2024 wef 01/04/2025] |
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| Remedial directions relating to section 21H |
21O.—(1) Subsection (2) applies where —| (a) | an individual has been appointed or removed in contravention of section 21H(1) or (2), or a person has been appointed a manager of or becomes a partner in a designated entity in contravention of section 21H(3) or (4); | | (b) | any condition of approval imposed under section 21H(5) has not been complied with; | | (c) | any of the following persons has provided false or misleading information or documents to the Authority in connection with an application for approval under section 21H(1), (2), (3) or (4):| (i) | a designated entity; | | (ii) | the trustee-manager of a designated entity; | | (iii) | the person mentioned in section 21H(4); or |
| | (d) | the Authority would not have granted its approval under section 21H(1), (2), (3) or (4) had it been aware, at the time of approval, of circumstances relevant to a person’s application for such approval. |
(2) The Authority may issue a direction to the designated entity or trustee-manager in question (as the case may be) to do as follows (whichever is applicable):| (a) | remove the individual as the chief executive officer, the chairperson of the board of directors or a director of the designated entity or trustee-manager, as the case may be; | | (b) | reinstate the individual as the chief executive officer, the chairperson of the board of directors or a director of the designated entity or trustee-manager, as the case may be; | | (c) | remove the person as a manager of or partner in the designated entity. |
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| (3) A direction issued under this section (including a direction varied under section 21Q(2)) has effect despite the provisions of any other written law or anything contained in the memorandum or articles of association, limited liability partnership agreement, partnership contract, trust deed or other constitution, of the designated entity or trustee-manager in question. |
| (4) Nothing in subsection (2) is to be taken as depriving a person who is removed under that subsection of compensation or damages payable to that person in respect of the termination of his or her appointment as the chief executive officer, the chairperson of the board of directors or a director, or the person’s removal as a manager or partner. [Act 20 of 2024 wef 01/04/2025] |
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| Remedial directions relating to section 21I |
21P.—(1) Subsection (2) applies where —| (a) | a person has contravened section 21I(1); or | | (b) | where the Authority has granted its approval under section 21I(1) —| (i) | any condition of approval imposed under section 21I(4) has not been complied with; | | (ii) | either of the joint applicants mentioned in section 21I(1)(a) or (b) has provided false or misleading information or documents to the Authority in connection with the person’s application for approval under section 21I(1); or | | (iii) | the Authority would not have granted its approval under section 21I(1) had it been aware, at the time of approval, of circumstances relevant to the application for such approval. |
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(2) The Authority may —| (a) | direct the person who has acquired as a going concern the business or part of the business mentioned in section 21I(1) to transfer or dispose of all or any part of the business within such time and subject to such conditions as the Authority considers appropriate; | | (b) | prohibit or restrict the transfer or disposal of all or any part of the business; or | | (c) | issue any other direction that the Authority considers appropriate. |
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| (3) A direction issued under this section (including a direction varied under section 21Q(2)) has effect despite the provisions of any other written law or anything contained in the memorandum or articles of association, limited liability partnership agreement, partnership contract, trust deed or other constitution, of the designated operating entity in question. [Act 20 of 2024 wef 01/04/2025] |
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| Other provisions relating to remedial directions |
21Q.—(1) Before issuing any direction to a person under section 21M, 21O or 21P, the Authority must —| (a) | unless the Authority decides that it is not practicable or desirable to do so, give the person written notice of the Authority’s intention to issue the direction and specify a date by which the person may make written representations with regard to the direction; and | | (b) | consider every written representation from the person received on or before the specified date mentioned in paragraph (a). |
| (2) The Authority may, at any time, revoke, vary or discharge, or suspend the operation of, any direction given by it under section 21M, 21O or 21P. |
| (3) Any person who fails to comply with a direction issued by the Authority under section 21M, 21O or 21P (including a direction that is varied under subsection (2)) within the period specified by the Authority shall be guilty of an offence. [Act 20 of 2024 wef 01/04/2025] |
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| Penalties under this Part |
| 21R. A person guilty of an offence under this Part shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 6 months or to both and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part of a day during which the offence continues after conviction. [Act 20 of 2024 wef 01/04/2025] |
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