Singapore legislation
Section 292A
Section 292A
Disqualification or removal of director or executive officer
(1)
Despite the provisions of any other written law —
an approved trustee must not, without the prior written consent of the Authority, permit a person to act as its executive officer; and
an approved trustee which is incorporated in Singapore must not, without the prior written consent of the Authority, permit a person to act as its director,if the person —
has been convicted, whether in Singapore or elsewhere, of an offence committed before, on or after 18 April 2013, being an offence —
involving fraud or dishonesty;
the conviction for which involved a finding that the person had acted fraudulently or dishonestly; or
that is specified in the Third Schedule to the Registration of Criminals Act 1949;
is an undischarged bankrupt, whether in Singapore or elsewhere;
has had execution against the person in respect of a judgment debt returned unsatisfied in whole or in part;
has, whether in Singapore or elsewhere, entered into a compromise or scheme of arrangement with the person’s creditors, being a compromise or scheme of arrangement that is still in operation;
has had a prohibition order under section 68 of the Financial Advisers Act 2001, section 74 of the Insurance Act 1966, section 101A or 123ZZC made against the person that remains in force; or
has been a director of, or directly concerned in the management of, a regulated financial institution, whether in Singapore or elsewhere —
which is being or has been wound up by a court; or
the approval, authorisation, designation, recognition, registration or licence of which has been withdrawn, cancelled or revoked by the Authority or, in the case of a regulated financial institution in a foreign country or territory, by the regulatory authority in that foreign country or territory.
(2)
Despite the provisions of any other written law, where the Authority is satisfied that a director of an approved trustee which is incorporated in Singapore, or an executive officer of an approved trustee —
has wilfully contravened or wilfully caused the approved trustee to contravene any provision of this Act;
has, without reasonable excuse, failed to secure the compliance of the approved trustee with this Act, the Monetary Authority of Singapore Act 1970 or any of the written laws set out in the Schedule to that Act; or
has failed to discharge any of the duties of his or her office,the Authority may, if it thinks it necessary in the interests of the public or a section of the public or for the protection of investors, by written notice to the approved trustee, direct the approved trustee to remove the director or executive officer (as the case may be) from his or her office or employment within such period as the Authority may specify in the notice, and the approved trustee must comply with the notice.
(3)
Without affecting any other matter that the Authority may consider relevant, the Authority must, when determining whether a director or an executive officer of an approved trustee has failed to discharge the duties of his or her office for the purposes of subsection (2)(c), have regard to such criteria as may be prescribed.
(4)
Before directing an approved trustee to remove a person from his or her office or employment under subsection (2), the Authority must —
give the approved trustee and the person written notice of its intention to do so; and
in the notice referred to in paragraph (a), call upon the approved trustee and the person to show cause, within such time as may be specified in the notice, why the person should not be removed.
(5)
If the approved trustee and the person referred to in subsection (4) —
fail to show cause within the time specified under subsection (4)(b) or within such extended period of time as the Authority may allow; or
fail to show sufficient cause,the Authority may direct the approved trustee to remove the person under subsection (2).
(6)
Any approved trustee which, or any director or executive officer of an approved trustee who, is aggrieved by a direction of the Authority under subsection (2) may, within 30 days after receiving the direction, appeal in writing to the Minister, whose decision is final.
(7)
Any approved trustee which contravenes subsection (1) or fails to comply with a notice issued under subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction.
(8)
No criminal or civil liability shall be incurred by an approved trustee, or any person acting on behalf of the approved trustee, in respect of anything done or omitted to be done with reasonable care and in good faith in the discharge or purported discharge of the obligations of the approved trustee under this section.
(9)
In this section, unless the context otherwise requires —
Definition
“regulated financial institution” means a person who carries on a business, the conduct of which is regulated or authorised by the Authority or, if it is carried on in Singapore, would be regulated or authorised by the Authority;
Definition
“regulatory authority”, in relation to a foreign country or territory, means an authority of the foreign country or territory exercising any function that corresponds to a regulatory function of the Authority under this Act, the Monetary Authority of Singapore Act 1970 or any of the written laws set out in the Schedule to that Act.