Section 28

A finance company must not enter into an agreement to acquire the share capital of any company by virtue of which the finance company would, if the agreement is carried out, acquire or hold, directly or indirectly, an interest of 20% or more of the share capital of that company, without first notifying the Authority of its intention to enter into the agreement and obtaining the approval of the Authority to its entering into the agreement.

The Authority may approve the entering into the agreement with or without conditions or may disapprove it without giving any reasons.

Subsection (1) does not apply to an agreement by virtue of which the finance company would acquire an interest of 20% or more of the share capital in a company by way of enforcement of security to satisfy debts due to it by the company if, upon making the acquisition, the finance company obtains the approval of the Authority to retain the shareholdings as an investment.

If the Authority does not grant approval under subsection (3), the finance company must dispose of the shareholdings at the earliest opportunity.

In this section, “company” means a company whether incorporated in Singapore or elsewhere.

A finance company which contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.