Singapore legislation
Section 55X
Section 55X
Shareholder must be fit and proper person
(1)
This section applies to, and in relation to, all individuals whether resident in Singapore or not and whether citizens of Singapore or not, and to all bodies corporate or unincorporate, whether incorporated or carrying on business in Singapore or not.
(2)
A person must not, on or after 1 July 2021, purchase or otherwise acquire any share in a merchant bank in Singapore without the prior approval of the Authority.
(3)
The Authority may approve an application made by any person under subsection (2) if the Authority is satisfied that —
the person is a fit and proper person in accordance with the Guidelines on Fit and Proper Criteria; and
having regard to the likely influence of the person, the merchant bank will or will continue to conduct its business prudently and comply with the provisions of this Act and any other written law applicable to it in the conduct of its business.
(4)
An approval under this section may be granted to a person subject to any condition imposed by the Authority, including but not limited to any condition —
restricting the person’s further acquisition of shares or voting power in the merchant bank; or
restricting the person’s exercise of voting power in the merchant bank.
(5)
The Authority may, at any time, impose additional conditions on, or vary or revoke any condition of, an approval granted under this section.
(6)
Any condition of approval imposed under this section has effect despite any provision of the Companies Act 1967 or anything contained in the memorandum or articles of association of the merchant bank.
(7)
A person commits an offence if the person fails to comply with —
subsection (2); or
any condition of approval imposed under this section.
(8)
A person who commits an offence under subsection (7) shall be liable on conviction —
in the case of an individual, to a fine not exceeding $125,000 and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part of a day during which the offence continues after conviction; or
in any other case, to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.