Singapore legislation

Section 11

of Finance Companies Act 1967

Section 11

Arrangements affecting control of finance company incorporated in Singapore

(1)

A person must not enter into any arrangement in relation to any finance company that is incorporated in Singapore by virtue of which the person would, if the arrangement is carried out, obtain control of the finance company without first notifying the Authority of the person’s intention to enter into the arrangement and obtaining the approval of the Authority to the person entering into the arrangement.

(2)

For the purposes of this section —

(a)

a person is to be regarded as entering into an arrangement by virtue of which the person would obtain control of a finance company if the person alone or acting together with an associate or associates would be in a position to determine the policy of the finance company;

(b)

the reference to entering into any arrangement is a reference to any formal or informal scheme, arrangement or understanding, whether expressly or by implication and, in particular, includes a reference —

(i)

creating a trust whether express or implied; and

(ii)

entering into a transaction or agreement,and references to an arrangement are to be construed accordingly; and

(c)

the reference to associates of a person has the same reference as under section 10.

(3)

Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 3 years or to both.

Read in full context — Finance Companies Act 1967 →