Singapore legislation
Section 27
Section 27
Shares of accounting corporation
(1)
Subject to the provisions of this Act, the voting shares in an accounting corporation must at all times be owned by corporate practitioners in the proportions referred to in section 17(3)(c)(ii) and must comply with the prescribed requirements.
(2)
The share capital of an accounting corporation which is paid up must at all times be at least a sum of $50,000 or any other sum that may be prescribed.
(3)
No share in an accounting corporation may be held by a person as nominee for another person and no security may be created over any share in an accounting corporation.
(4)
Any purchase or acquisition of a share of an accounting corporation, and any security created over any such share, in contravention of subsection (3) is null and void.
(5)
A public accountant whose registration is cancelled under Part 5 or 6 must not —
hold any shares in any accounting corporation; or
directly or indirectly, take part or be concerned in the management or practice of any accounting corporation without the permission of the Oversight Committee,unless and until he or she is subsequently reinstated as a registered public accountant.
(6)
A public accountant whose registration is suspended under Part 5 or 6 must not, during the period of suspension —
exercise any voting rights attached to his or her shares in any accounting corporation; or
take part or be concerned in the management or practice of any accounting corporation without the permission of the Oversight Committee.
(7)
Despite subsections (1) and (5), where any individual who is a member of an accounting corporation by virtue of being a corporate practitioner has, for any reason other than those mentioned in subsection (8), ceased to be —
a public accountant; or
a director or an employee of the accounting corporation,the Oversight Committee may, upon an application made by that individual or by the accounting corporation concerned, grant him or her a grace period of not more than 2 years to transfer his or her voting shares in the accounting corporation.
(8)
Despite subsection (1), where any individual who is a member of an accounting corporation by virtue of being a corporate practitioner has, by reason of death, bankruptcy or incapacity due to mental or physical disability —
ceased to be a public accountant; or
ceased to be a director or an employee of the accounting corporation,the Oversight Committee may, upon the application of the accounting corporation concerned, allow the administrator or executor of that individual’s estate, the trustee in bankruptcy or the committee of that estate (as the case may be) to hold the individual’s voting shares in the accounting corporation for a grace period.
(9)
The grace period mentioned in subsection (8) is a period not exceeding 2 years starting —
in the case of death, from the date the administrator or executor is appointed by the court;
in the case of bankruptcy, from the date the individual is adjudged a bankrupt; or
in the case of incapacity by reason of mental or physical disability, from the date the individual becomes incapable to act.
(10)
The person or persons who are allowed under subsections (7) and (8), respectively, a grace period to transfer or hold voting shares in an accounting corporation are treated as corporate practitioners for the purposes of computing the proportion of any voting shares in the accounting corporation which is required by section 17(3)(c)(ii) to be owned by corporate practitioners.
(11)
The person or persons who are allowed under subsections (7) and (8), respectively, a grace period to transfer or hold voting shares in an accounting corporation must not during the grace period exercise any voting rights attached to the person’s or persons’ voting shares in the accounting corporation or take part or be concerned in the management or practice of the accounting corporation.