Singapore legislation
Clause 25
Clause 25
Amendment of section 72
Section 72 of the principal Act is hereby amended —
by deleting subsections (1) and (2) thereof and substituting therefor the following: —“(1) Subject to this Part, a fidelity fund shall be held and applied for the purpose of compensating persons who suffer pecuniary loss from any defalcation committed by a member company or any of its directors or by any of the clerks or servants of such a member company in relation to any money or other property which, whether before or after the date of the coming into operation of this Act, in the course of or in connection with the business of that company —
was entrusted to or received by a member company or any of its directors or any of the company’s clerks or servants for or on behalf of any other person; or
(the member company being in respect of the money or other property either the sole trustee or trustees or trustee or trustees with any other person or persons) was entrusted to or received by the member company or any of its directors or any of the company’s clerks or servants as trustee or trustees or for or on behalf of the trustees of that money or property.(2) Save as otherwise provided in this section, the total amount that may be paid under this Part to all persons who suffer loss through defalcations by a member company or any of its directors or through defalcations by any of the company’s clerks or servants shall not, in any event, exceed in respect of that member company the sum of one hundred thousand dollars, but for the purposes of this subsection any amount paid from a fidelity fund shall to the extent to which the fund is subsequently reimbursed therefor be disregarded.”; and
by deleting subsection (6) thereof and substituting therefor the following: —“(6) For the purposes of this section “director of a member company” includes a person who has been, but at the time of any defalcation in question has ceased to be a director of a member company if, at the time of the defalcation, the person claiming compensation has reasonable grounds for believing that person to be a director of a member company.”.