Singapore legislation
Clause 7
Clause 7
New powers of investment of trustees
(1)
The investments specified in section 4 of this Act shall include any security to which this section applies and any units, or any shares of the investments subject to the trusts, of an authorised unit trust scheme.
(2)
Subject to the provisions of this section, this section shall apply to any securities issued by a company (whether incorporated in Singapore or elsewhere) prices for which are quoted on the Stock Exchange of Singapore.
(3)
This section shall not apply to securities of any company unless —
the total issued and paid-up share capital of the company is, or if converted into dollars from a currency other than dollars is, five million dollars or more; and
the company has, in each of the five years immediately preceding the calendar year in which the investment is made, paid a dividend on all the shares issued by the company, excluding any shares issued after the dividend was declared and any shares which by their terms of issue did not rank for the dividend for that year,and the rate of exchange in relation to the conversion of issued and paid-up share capital shall be that certified by a bank manager, as defined in subsection (3) of section 8 of this Act, to be appropriate on the day a trustee exercises his power to invest in such securities.
(4)
For the purposes of paragraph (b) of subsection (3) of this section a company formed —
to take over the business of another company or other companies; or
to acquire the securities of, or control of, another company or other companies,or for either of those purposes and for other purposes shall be deemed to have paid a dividend as mentioned in that paragraph in any year in which such a dividend has been so paid by the other company or all of the other companies, as the case may be.
(5)
This section shall not apply to shares or debenture stock not fully paid up, except shares or stock which by the terms of issue are required to be fully paid up within nine months of the date of issue.
(6)
No provision relating to the powers of the trustee contained in any instrument made before the date of the coming into operation of this Act shall limit the powers conferred by this section, but those powers shall be exercisable only in so far as a contrary intention is not expressed in any instrument so relating which is made after the date of the coming into operation of this Act.