Singapore legislation
Clause 6
Clause 6
New First Schedule
The Trustees Act is amended by inserting, immediately after section 89, the following Schedule:“FIRST SCHEDULESections 4 and 6.Manner of InvestmentPart I1. In any securities of the Government.
2. In any securities the repayment of the amount received and the interest on which is or shall be guaranteed by the Government.
3. In fixed income securities issued in Singapore by any public authority established under written law.
4. In any interest bearing deposits held in Singapore currency in the Post Office Savings Bank or a bank or finance company in Singapore.
5. In negotiable certificates of deposits denominated in Singapore currency and issued by any bank in Singapore.Part II1. In any units, or any shares of the investments subject to the trusts, of an authorised unit trust scheme.
2. In any securities issued by a company (whether incorporated in Singapore or elsewhere) —
which are listed on the Stock Exchange of Singapore; or
for which prices are quoted on the Central Limit Order Book (CLOB) International.
3. In bank bills and trade bills denominated in Singapore currency which —
are endorsed by a bank in Singapore; and
will mature not later than 3 months after the date of the investment.
4. In or upon titles to land in Singapore, such titles being freehold titles or grants in perpetuity or leases (other than mining leases) of which their unexpired term at the time of such investment is not less than 30 years.Part IIIIn any fixed income securities of a government outside Singapore having a Triple A credit rating or equivalent given by any of the following credit rating agencies:
Moody’s Investor’s Service, Inc., USA;
Standard and Poor’s Corporation, USA.Part IV1.—
Paragraph 2 of Part II shall not apply to securities of any company unless —
the total issued and paid-up share capital of the company, if incorporated in Singapore, is not less than $15 million and, if incorporated elsewhere, is not less than $30 million;
the company has, in each of the 3 financial years immediately preceding the financial year in which the investment is made, paid a dividend on all shares issued by the company, excluding any shares issued after the dividend was declared and any shares which by their terms of issue did not rank for the dividend for that financial year;
the shareholders equity of the company is not less than $30 million; and
the company has reported a profit (excluding any extraordinary item) in the profit and loss account in the annual accounts of the company in the financial year immediately preceding the financial year in which the investment is made.(2) A company formed —
to take over the business of another company or other companies; or
to acquire the securities of, or control of, another company or other companies,or for either of those purposes and for other purposes, shall be deemed —
to have paid a dividend as mentioned in sub-paragraph (1)(b) in any financial year in which such a dividend has been so paid by the other company or each of the other companies, as the case may be;
to have had a shareholders equity of not less than $30 million as mentioned in sub-paragraph (1)(c) if the other company or companies, as the case may be, had a shareholders equity of not less than $30 million; and
to have reported a profit as mentioned in sub-paragraph (1)(d) in the financial year in which such a profit has been so reported by the other company or each of the other companies, as the case may be.(3) For the purposes of sub-paragraph (1) (a) and (c), the issued and paid-up share capital and the shareholders equity shall, if they are in a currency other than Singapore currency, be converted into Singapore currency at a rate of exchange certified by a bank licensed under the Banking Act (Cap. 19) to be appropriate on the day the trustee exercises his power to invest in such securities.(4) The securities referred to in paragraph 2 of Part II do not include shares or debenture stock not fully paid up, except shares or stock which by the terms of issue are required to be fully paid up within 9 months of the date of issue.(5) Where immediately before the date of commencement of the Trustees (Amendment) Act 1992 the securities of a company were investments in which trustees were authorised by this Act to invest and the total issued and paid-up capital of that company, if incorporated in Singapore, was less than $15 million and, if incorporated elsewhere, was less than $30 million, sub-paragraph (1) (a) shall have effect in relation to those securities only after the expiry of 3 years from that date.(6) Where immediately before the date of commencement of the Trustees (Amendment) Act 1992 the securities of a company were investments in which trustees were authorised by this Act to invest and the shareholders equity of that company was less than $30 million, subparagraph (1) (c) shall have effect in relation to those securities only after the expiry of 3 years from that date.
2. The land referred to in paragraph 4 of Part II shall not include land, the gross rental whereof is at the time of such investment less than 7% of the purchase price of such land, in the case of a purchase, or the value of such land ascertained in accordance with paragraph 2 of Part V, in the case of a mortgage.
3. Not more than 30% of the funds belonging to the trust shall at any time be invested in the investments in Part III taken together.Part V1. In relation to the investments specified in paragraphs 1, 2 and 3 of Part II and paragraph 1 of Part III, proper advice for the purposes of section 5(2) means the advice of an investment adviser licensed under the Securities Industry Act (Cap. 289) or a bank licensed under the Banking Act (Cap. 19) or a merchant bank approved under the Monetary Authority of Singapore Act (Cap. 186) as to the matters referred to in section 5(1).
2. In relation to the investments specified in paragraph 4 of Part II, proper advice for the purposes of section 5(2) means the advice on the value of the land at the time of the investment given by an appraiser who is licensed under the Auctioneers’ Licences Act (Cap. 16) to value or appraise land and is instructed and employed independently of any owner of the land.”.