Singapore legislation

Clause 27

Investments

(1)

No bank shall acquire or hold any part of the share capital of, or otherwise have an interest in, any financial, commercial, agricultural, industrial or other undertaking exceeding in the aggregate forty per centum of that bank’s capital funds except such shareholding as the bank may acquire in the course of the satisfaction of debts due to it, which shareholding shall, however, be disposed of at the earliest suitable opportunity.

(2)

This section shall not apply in respect of —

(a)

any shareholding approved in writing by the Commissioner in another bank or in a subsidiary company formed by the bank concerned for the carrying out of nominee, executor or trustee functions or other functions incidental to banking business;

(b)

any shareholding approved by the Commissioner in any corporation set up for the purpose of promoting development in Singapore.

(3)

The provisions of subsection (1) of this section shall not apply to the Development Bank of Singapore, Limited.

(4)

Any bank which contravenes the provisions of subsection (1) of this section shall be guilty of an offence under this Act.

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