Singapore legislation

Section 44K

of Public Utilities Act 2001

Section 44K

Meaning and effect of special administration order

Amended by13/202013/202013/2020

(1)

A special administration order is an order of the Minister, made in accordance with section 44L in relation to a designated entity, designated business trust or designated trust, directing that, during the period for which the order is in force, the affairs, business and property of that designated entity, designated business trust or designated trust (as the case may be) is to be managed by a person appointed by the Minister (which may include the Board) —

(a)

for securing one or more of the purposes of such order set out in subsection (2); and (b)in a manner which protects the respective interests of the shareholders, unitholders or beneficiaries (as the case may be) and the creditors of, the designated entity, designated business trust or designated trust, as the case may be.

Amended by13/2020

(2)

The purposes mentioned in subsection (1)(a) are the following:

(a)

the security and reliability of the supply of water in Singapore;

(b)

the survival of the designated entity, designated business trust or designated trust (as the case may be), or the whole or any part of its business or undertaking, as a going concern;

(c)

the transfer to another person, or (as respects different parts of its business or undertaking) to 2 or more different persons, as a going concern, of so much of the business or undertaking of a designated entity, designated business trust or designated trust as it is necessary to transfer in order to ensure that the obligations of the designated entity, the trustee-manager of the designated business trust or the trustee of the designated trust (as the case may be) under or in respect of any contract with the Board —

(i)

to supply water to the Board; or

(ii)

to collect, treat, recover or dispose of used water (including sewage, waste matter and effluent),may be properly carried out;

(d)

the carrying out of the obligations of the designated entity, the trustee-manager of the designated business trust or the trustee of the designated trust (as the case may be) under or in respect of any contract with the Board —

(i)

to supply water to the Board; or

(ii)

to collect, treat, recover or dispose of used water (including sewage, waste matter and effluent),pending the making of the transfer, as a going concern, of the business or undertaking of the designated entity, designated business trust or designated trust to any other person or persons.

Amended by13/2020

(3)

The Minister may make regulations under section 72 for giving effect to this Division, including —

(a)

regulations governing the transfer of a business or an undertaking of a designated entity, designated business trust or designated trust referred to in subsection (2)(c); and

(b)

where a special administration order is made, regulations for applying, omitting or modifying the provisions of Part 7 of the Insolvency, Restructuring and Dissolution Act 2018.

Amended by13/2020