Singapore legislation
Section 4
Section 4
Interest in specified products
(1)
Subject to this section, a person has an interest in specified products if the person has authority (whether formal or informal, or express or implied) to dispose of, or to exercise control over the disposal of, those specified products.
(2)
For the purposes of subsection (1), it is immaterial that the authority of a person to dispose of, or to exercise control over the disposal of, particular specified products is or is capable of being made subject to restraint or restriction.
(3)
Where any property held in trust consists of or includes specified products and a person knows, or has reasonable grounds for believing, that the person has an interest under the trust, the person is deemed to have an interest in those specified products.
(4)
Where a corporation has, or is by the provisions of this section deemed to have, an interest in a specified product and —
the corporation is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of a person; or
a person has a controlling interest in the corporation,that person is deemed to have an interest in that specified product.
(5)
Where a corporation has, or is by the provisions of this section (apart from this subsection) deemed to have, an interest in a specified product and —
a person is;
the associates of a person are; or
a person and the person’s associates are,entitled to exercise or control the exercise of at least 20% of the votes attached to the voting shares in the corporation, that person is deemed to have an interest in that specified product.
(6)
For the purposes of subsection (5), a person is an associate of another person if the firstmentioned person is —
a subsidiary of that other person;
a person who is accustomed or is under an obligation whether formal or informal to act in accordance with the directions, instructions or wishes of that other person in relation to the specified product mentioned in subsection (5); or
a corporation that is, or a majority of the directors of which are, accustomed or under an obligation whether formal or informal to act in accordance with the directions, instructions or wishes of that other person in relation to that specified product.
(7)
A person is deemed to have an interest in a specified product in any one or more of the following circumstances:
where the person has entered into a contract to purchase a specified product;
where the person has a right, otherwise than by reason of having an interest under a trust, to have a specified product transferred to the person or to the person’s order, whether the right is exercisable presently or in the future and whether on the fulfilment of a condition or not;
where the person has the right to acquire a specified product, or an interest in a specified product, under an option, whether the right is exercisable presently or in the future and whether on the fulfilment of a condition or not; or
where the person is entitled, otherwise than by reason of the person having been appointed a proxy or representative to vote at a meeting of members of a corporation or of a class of its members, to exercise or control the exercise of a right attached to a specified product, not being a specified product of which the person is the registered holder.
(8)
A person is deemed to have an interest in a specified product if that specified product is held jointly with another person.
(9)
For the purpose of determining whether a person has an interest in a specified product, it is immaterial that the interest cannot be related to a particular specified product.
(10)
The following interests are to be disregarded:
an interest in a specified product if the interest is that of a person who holds the specified product as bare trustee;
an interest in a specified product if the interest is that of a person whose ordinary business includes the lending of money if the person holds the interest only by way of security for the purposes of a transaction entered into in the ordinary course of business in connection with the lending of money;
an interest of a person in a specified product if that interest is an interest held by the person by reason of the person holding a prescribed office;
an interest of a company in its own securities if that interest is purchased or otherwise acquired in accordance with sections 76B to 76G of the Companies Act 1967;
a prescribed interest in a specified product being an interest of such person, or of a person included in such class of persons, as may be prescribed.
(11)
An interest in a specified product is not to be disregarded by reason only of —
its remoteness;
the manner in which it arose; or
the fact that the exercise of a right conferred by the interest is or is capable of being made subject to restraint or restriction.
(12)
In subsection (6)(a), “subsidiary” has the meaning given by section 5 of the Companies Act 1967.