Singapore legislation

Section 24

of Variable Capital Companies Act 2018

Section 24

Disposal of shares in section 22(6) and (11)

Amended by28/201928/2019

(1)

This section applies to the shares in a VCC mentioned in section 22(6) and (11).

Amended by28/2019

(2)

The subsidiary mentioned in section 22(6) or (11) may at any time —

(a)

sell the shares (or any of them) for cash;

(b)

transfer the shares (or any of them) for the purposes of or pursuant to any share scheme, whether for employees, directors or other persons;

(c)

transfer the shares (or any of them) as consideration for the acquisition of shares in or assets of another company or VCC or assets of a person; or

(d)

sell, transfer or otherwise use the shares for such other purposes as the Minister may by order prescribe.

Amended by28/2019

(3)

In subsection (2), “cash”, in relation to a sale of shares by the subsidiary, means —

(a)

cash (including foreign currency) received by the subsidiary;

(b)

a cheque received by the subsidiary in good faith which the directors have no reason for suspecting will not be paid;

(c)

a release of a liability of the subsidiary for a liquidated sum; or

(d)

an undertaking to pay cash to the subsidiary on or before a date not more than 90 days after the date on which the subsidiary agrees to sell the shares.