Singapore legislation
Section 81P
Section 81P
Power of Authority to remove officers
(1)
Where the Authority is satisfied that any of the following applies to an officer of an approved clearing house or a recognised clearing house (such approved clearing house or recognised clearing house being a Singapore corporation), 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 direct the approved clearing house or recognised clearing house to remove the officer from his or her office or employment, and the approved clearing house or recognised clearing house must comply with the notice, despite section 152 of the Companies Act 1967 or anything in any other law or in the memorandum or articles of association or other constituent document or documents of the approved clearing house or recognised clearing house:
the officer has wilfully contravened, or wilfully caused the approved clearing house or recognised clearing house to contravene, this Act or the business rules of the approved clearing house or recognised clearing house;
the officer has, without reasonable excuse, failed to ensure compliance with this Act, or with the business rules of the approved clearing house or recognised clearing house, by the approved clearing house or recognised clearing house, by a member of the approved clearing house or recognised clearing house or by a person associated with that member;
the officer has failed to discharge the duties or functions of his or her office or employment;
the officer is an undischarged bankrupt, whether in Singapore or elsewhere;
the officer has had execution against him or her in respect of a judgment debt returned unsatisfied in whole or in part;
the officer has, whether in Singapore or elsewhere, made a compromise or scheme of arrangement with his or her creditors, being a compromise or scheme of arrangement that is still in operation;
the officer has been convicted, whether in Singapore or elsewhere, of an offence committed before, on or after 1 August 2013, involving fraud or dishonesty or the conviction for which involved a finding that he or she had acted fraudulently or dishonestly.
(2)
Without affecting any other matter that the Authority may consider relevant, the Authority may, in determining whether an officer of an approved clearing house, or a recognised clearing house, has failed to discharge the duties or functions of his or her office or employment for the purposes of subsection (1)(c), have regard to such criteria as the Authority may prescribe or specify in directions issued by written notice.
(3)
Subject to subsection (4), the Authority must not direct an approved clearing house, or a recognised clearing house, to remove an officer from his or her office or employment without giving the approved clearing house or recognised clearing house an opportunity to be heard.
(4)
The Authority may direct an approved clearing house, or a recognised clearing house, to remove an officer from his or her office or employment under subsection (1) on any of the following grounds without giving the approved clearing house or recognised clearing house an opportunity to be heard:
the officer is an undischarged bankrupt, whether in Singapore or elsewhere;
the officer has been convicted, whether in Singapore or elsewhere, of an offence committed before, on or after 1 August 2013 —
involving fraud or dishonesty or the conviction for which involved a finding that he or she had acted fraudulently or dishonestly; and
punishable with imprisonment for a term of 3 months or more.
(5)
Where the Authority directs an approved clearing house, or a recognised clearing house, to remove an officer from his or her office or employment under subsection (1), the Authority need not give that officer an opportunity to be heard.
(6)
Any approved clearing house or recognised clearing house that is aggrieved by a direction of the Authority made in relation to the approved clearing house or recognised clearing house under subsection (1) may, within 30 days after the approved clearing house or recognised clearing house is notified of the direction, appeal to the Minister, whose decision is final.
(7)
Despite the lodging of an appeal under subsection (6), any action taken by the Authority under this section continues to have effect pending the Minister’s decision.
(8)
The Minister may, when deciding an appeal under subsection (6), make such modification as he or she considers necessary to any action taken by the Authority under this section, and such modified action has effect from the date of the Minister’s decision.
(9)
Subject to subsection (10), no criminal or civil liability shall be incurred by an approved clearing house, or a recognised clearing house, in respect of any thing done or omitted to be done with reasonable care and in good faith in the discharge or purported discharge of its obligations under this section.
(10)
Any approved clearing house or recognised clearing house which, without reasonable excuse, contravenes a written notice issued under subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000 and, in the case of a continuing offence, to a further fine not exceeding $15,000 for every day or part of a day during which the offence continues after conviction.