Clause 18

In this Division, unless inconsistent with the context or subject-matter —“investment company” means a corporation (not being a private company) for the time being declared by proclamation of the Minister to be an investment company;“net tangible assets” means tangible assets at book values less total liabilities at book values and less any aggregate amount by which the book value of the marketable securities held by the corporation exceeds their market value.[Aust. s. 334.]Proclamation of investment companies(2) The Minister may by proclamation published in the Gazette declare to be an investment company any corporation which is engaged primarily in the making of investments in marketable securities for the purpose of revenue and for profit and not for the purpose of exercising control, and the Minister may by like proclamation revoke any proclamation declaring a corporation to be an investment company.Restriction on borrowing by investment companies

An investment company shall not invest an amount in a corporation if that amount, or the sum of that amount and amounts previously invested by it in that corporation and still so invested, exceeds an amount equivalent to ten per cent of the net tangible assets of the investment company. [Aust. s. 336.](2) An investment company shall not invest an amount in the ordinary shares of a corporation if that amount, or the sum of that amount and amounts previously invested by it in the ordinary shares of that corporation and still so invested, exceeds an amount equivalent to ten per cent of the subscribed ordinary share capital of the corporation.(3) Subsection (2) of this section shall not apply in respect of a wholly-owned subsidiary of an investment company for the purpose of carrying out nominee, underwriting, dealing or other functions incidental to the business of an investment company.Restriction on underwriting by investment companies322.—

An investment company shall not underwrite any issue of securities to an amount that, when added to the amount or amounts, if any, to which it has previously underwritten a current issue or issues of other securities (not being an amount or amounts in respect of which the underwriting obligation has been discharged), exceeds an amount equivalent to forty per cent of its net tangible assets. [Aust. s. 337.]Provisions for unloading securities underwritten and not taken up(2) Where —

an investment company has underwritten any issue of securities and, in relation to the underwriting, has not contravened subsection (1) of this section; and

the investment company, as a result of the underwriting, invests in a corporation, being an investment contrary to section 321,the investment company shall be deemed not to have contravened a provision of that section by reason of so investing in the corporation if, at the expiration of twelve months after so investing —

the amount invested by it in the corporation does not exceed an amount equivalent to ten per cent of the net tangible assets of the investment company; and

it does not hold more than ten per cent of the subscribed ordinary share capital of the corporation.(3) This section extends to and in relation to sub-underwriting as if the sub-underwriting were underwriting.Special requirements as to articles and prospectus

the type of security in which it is among the objects of the company to invest; and (b)whether it is among the objects of the company to invest within Singapore or outside Singapore or both.[Aust. s. 338.]Not to hold shares in other investment companies

any other investment company; or (b)any corporation incorporated outside Singapore which is engaged primarily in the making of investments in marketable securities for the purpose of revenue and for profit and not for the purpose of exercising control and which is specified by proclamation of the Minister.[Aust. s. 339.]Not to speculate in commodities325.—

No investment company shall for the purpose of profit buy or sell or deal in any raw materials or manufactured goods, whether in existence or not, otherwise than by investing in companies trading in such materials or goods. [Aust. s. 340.](2) Subsection (1) of this section shall not apply to or in relation to —

any buying, selling or dealing by an investment company in pursuance of a contract entered into by the investment company before it was declared to be an investment company; or

the selling of or the dealing in raw materials or manufactured goods acquired by the investment company before it was so declared.Balance-sheets and accounts326.—

An investment company shall attach to its balance-sheet a complete list of all the investments of the company as at the date of the balance-sheet showing the descriptions and quantities of such investments. [Aust. s. 341.](2) An investment company shall show separately in the profit and loss account, in addition to any other matters required to be shown therein, income from underwriting (including sub-underwriting).Investment fluctuation reserve

If default is made by an investment company in complying with the provisions of this Division the investment company and every officer of the investment company who is in default shall be guilty of an offence under this Act and shall be liable on conviction to imprisonment for a term not exceeding two years or to a fine not exceeding five thousand dollars and also to a default penalty not exceeding five hundred dollars. [Aust. s. 343.](2) No transaction entered into by the company shall be invalid by reason only of such default.”.