Clause 8

No finance company shall, after the commencement of the Finance Companies (Amendment) Act 1984, enter into an agreement to acquire the share capital of any company by virtue of which the finance company would, if the agreement is carried out, acquire or hold, whether directly or indirectly, an interest of 20 per cent or more of the share capital of that company, without first notifying the Authority of its intention to enter into the agreement and obtaining the approval of the Authority to its entering into the agreement.(2) The Authority may approve the entering into the agreement with or without conditions or may disapprove it without giving any reasons.(3) Subsection (1) shall not apply to an agreement by virtue of which the finance company would acquire an interest of 20 per cent or more of the share capital in a company by way of enforcement of security to satisfy debts due to it by the company, if, upon making the acquisition, the finance company obtains the approval of the Authority to retain the shareholdings as an investment. In the event, however, that the Authority does not grant approval, the finance company shall dispose of the shareholdings at the earliest opportunity.(4) In this section, “company” means a company whether incorporated in or outside Singapore.(5) A finance company that contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.Power of the Authority to secure compliance with sections 18, 21, 22 and 2422B.—

Any finance company, if at any time called upon in writing by the Authority to do so, shall satisfy the Authority by the production of such evidence or information as it may require, that the finance company is not in contravention of any of the provisions of section 18, 21, 22 or 24.(2) For the purpose of securing compliance with the sections referred to in subsection (1), the Authority may from time to time by notice in writing require any finance company to aggregate its assets, liabilities or profits, as the case may be, with the assets, liabilities or profits of all or any of the finance company’s related companies, as described in section 6 of the Companies Act (Cap. 185), and the finance company shall comply with that requirement within such time as is specified in the notice.(3) A finance company that fails to comply with any requirement of the Authority under this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $2,000 for every day during which the default continues.”.