Singapore legislation
Section 19
Section 19
Approval for accounting corporations
(1)
A public accountant who wishes to have a company or proposed company approved as an accounting corporation shall apply to the Board for approval of —
the company as an accounting corporation; and
the name or proposed name of the accounting corporation.
(2)
An application shall be made in accordance with any rules made under section 74.
(3)
Subject to subsection (4) and any other provisions of this Act, the Board may, on receiving an application made under this section, approve the company or proposed company concerned as an accounting corporation if and only if —
the memorandum of association of the company or proposed company provides that one of the primary objects of the company or proposed company is to provide public accountancy services;
the authorised share capital of the company or proposed company that is paid up or to be paid up is not less than $50,000, or such other sum as may be prescribed;
the articles of association of the company or proposed company provide that —
not less than two-thirds, or such other proportion as may be prescribed, of the directors (including the chairman) shall be public accountants;
not less than two-thirds, or such other proportion as may be prescribed, of the voting shares of the company or proposed company shall be owned by corporate practitioners; and
only natural persons can own any shares of the company or proposed company;
the business of the company or proposed company, so far as it relates to the provision of public accountancy services, will be under the control and management of one or more directors of the company who are public accountants; and
the company or proposed company is or will be covered by professional indemnity insurance in accordance with section 28 and any rules made under section 74.
(4)
Where the company or proposed company has for the time being only 2 directors, then, notwithstanding subsection (3)(c)(i), the articles of association shall provide that one of them shall be a public accountant.
(5)
If the Board gives approval for a proposed company to be an accounting corporation, the approval shall not take effect until the company is formed and registered under the Companies Act (Cap. 50).[18A