Clause 27

Section 122 of the Companies Act is amended by inserting, immediately after subsection (5), the following subsections:“(6) Notwithstanding anything contained in this Act or in the memorandum or articles of a company or in any agreement with a company, a director of a company shall not resign or vacate his office unless there are remaining in the company at least two directors, one of whom shall be ordinarily resident in Singapore.(7) Subsection (6) shall not apply where a director of a company is required to resign or vacate his office if he has not within the period referred to in subsection (1) of section 124 obtained his qualification or by virtue of his disqualification under section 125, 125A, 130 or 130A or section 28(1)(b) of the Insurance Act (Cap. 193), or sections 58, 59 and 60 of the Banking Act (Cap. 182) or sections 35 and 37 of the Finance Companies Act (Cap. 191).(8) If default is made in complying with subsection (1) or (6), the company and every director shall be guilty of an offence and shall be liable on conviction to a fine not exceeding ten thousand dollars and also to a default penalty.(9) In this section, director includes any person who was a director of the company at any time within the preceding twelve months from the date of the default.”.