Banking Act 1970 · 2020 Revised Edition · Part 4 · Reserve Funds, Dividends, Balance Sheets and Information
28. Disclosure of interest by directors
Feedback & supportEvery director of a bank in Singapore who has in any manner, directly or indirectly, an interest in a credit facility from or an exposure of, or a proposed credit facility from or exposure of, that bank must as soon as practicable declare the nature of the director’s interest to the board of directors of that bank and the secretary of that bank must cause the declaration to be circulated immediately to all the directors.
director
“director” includes any person occupying the position of director of a corporation by whatever name called and includes a person in accordance with whose directions or instructions the directors of a corporation are accustomed to act and an alternate or substitute director;
The requirements of subsection (1) do not apply in any case where the interest of the director consists only of being a member or creditor of a company which is interested in a credit facility from or an exposure of, or a proposed credit facility from or exposure of, that bank if the interest of the director may properly be regarded as of a trivial nature.
company
“company” means any company defined in any written law for the time being in force relating to companies, any company formed pursuant to any Royal Charter or Letters Patent, and any company incorporated or registered under any written law in force in Singapore and includes any body corporate or unincorporate, whether incorporated, formed or established in or outside Singapore;
For the purposes of subsection (1), a general notice given to the board of directors of a bank by a director to the effect that the director is an officer or a member of a specified company, or a partner or manager of a specified firm or specified limited liability partnership, and that the director is to be regarded as having an interest in any credit facility or exposure which may, after the date of the notice, be granted to or acquired in respect of that company, firm or limited liability partnership, is deemed to be a sufficient declaration of interest in relation to any credit facility so granted or any exposure so acquired if —
bank
“bank” means any company which holds a valid bank licence under section 7 or 79;
it specifies the nature and extent of the director’s interest in that company, firm or limited liability partnership;
the director’s interest is not different in nature from or greater in extent than the nature and extent so specified in the notice at the time any credit facility is granted or any exposure is acquired; and
it is given at a meeting of the board of directors or the director takes reasonable steps to ensure that it is brought up and read at the next meeting of the board of directors after it is given.
Every director of a bank in Singapore who holds any office or possesses any property whereby, directly or indirectly, duties or interest might be created in conflict with the director’s duties or interest as director must declare at a meeting of the directors of that bank the fact and the nature, character and extent of the conflict.
bank in Singapore
“bank in Singapore” means —(a)a bank incorporated in Singapore; or(b)in the case of a bank incorporated outside Singapore, the branches and offices of the bank located within Singapore;
The declaration mentioned in subsection (4) is to be made at the first meeting of the directors held —
after the person becomes a director of the bank; or
if already a director, after the person commences to hold the office or to possess the property, as the case may be.
The secretary of that bank must —
cause to be brought up and read any declaration made under subsection (1) or (4) at the next meeting of the directors after it is given; and
record any declaration made under this section in the minutes of the meeting at which it was made or at which it was brought up and read.
Any director who acts in contravention of subsection (1) or (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both.
In this section, “exposure” has the meaning given in the Fifth Schedule.