Singapore legislation
Section 63
Section 63
Financial structure of successor companies
(1)
If the Minister for Finance so directs at any time before a successor company ceases to be wholly owned by the Government, such sum (not exceeding the accumulated realised profits of the Board in connection with its undertaking) as may be specified in the direction shall be carried by that successor company to a reserve (referred to in this section as the statutory reserve).
(2)
The statutory reserve may only be applied by a successor company in paying up unissued shares of the company to be allotted to members of the company as fully-paid bonus shares.
(3)
For the purposes of any statutory accounts of a successor company —
the vesting effected by virtue of subsection (1) of section 61 shall be taken to have been a vesting of the property, rights and liabilities comprised in the Board’s undertaking to which the Board was entitled or subject on 1st October 1995 and which was allocated to the company by determination of the Minister under that subsection; and
the value of any asset and the amount of any liability of the Board taken to have been vested in a successor company by virtue of paragraph (a) shall be taken to be the value or, as the case may be, the amount assigned to that asset or liability in the statement of accounts of the Board as at 1st October 1995.
(4)
For the purposes of any statutory accounts of a successor company, the amount to be included in respect of any item shall be determined as if anything done by the Board (whether by way of acquiring, revaluing or disposing of any asset or incurring, revaluing or discharging any liability, or by carrying any amount to any provision or reserve, or otherwise) had been done by the company.
(5)
Without prejudice to the generality of subsection (4), the amount to be included in any reserves of a successor company as representing its accumulated realised profits shall be determined as if any profits realised and retained by the Board in connection with that part of its undertaking vested in the company had been realised and retained by the company.
(6)
References in this section to the statutory accounts of a successor company are references to any accounts prepared by the company for the purposes of any provision of the Companies Act [Cap. 50].