Singapore legislation
Clause 51
Clause 51
Financial structure of broadcasting successor companies
(1)
If the Minister for Finance so directs at any time before a broadcasting successor company ceases to be wholly owned by the Government, such sum (not exceeding the accumulated realised profits of the Corporation in connection with its undertaking) as may be specified in the direction shall be carried by that broadcasting successor company to a reserve (referred to in this section as the statutory reserve).
(2)
The statutory reserve may only be applied by a broadcasting successor company in paying up unissued shares of the company to be allotted to members of the company as fully-paid bonus shares.
(3)
For the purposes of any statutory accounts of a broadcasting successor company —
the vesting effected by virtue of section 49 shall be taken to have been a vesting of the property, rights and liabilities comprised in the Corporation’s undertaking to which the Corporation was entitled or subject on the transfer date and which was allocated to the company by determination of the Minister under section 49(1); and
the value of any asset and the amount of any liability of the Corporation taken to have been vested in a broadcasting successor company by virtue of paragraph (a) shall be taken to be the value or, as the case may be, the amount assigned to that asset or liability in the statement of accounts of the Corporation as at the transfer date.
(4)
For the purposes of any statutory accounts of a broadcasting successor company, the amount to be included in respect of any item shall be determined as if anything done by the Corporation (whether by way of acquiring, revaluing or disposing of any asset or incurring, revaluing or discharging any liability, or by carrying any amount to any provision or reserve, or otherwise) had been done by the company.
(5)
Without prejudice to the generality of subsection (4), the amount to be included in any reserves of a broadcasting successor company as representing its accumulated realised profits shall be determined as if any profits realised and retained by the Corporation in connection with that part of its undertaking vested in the company had been realised and retained by the company.
(6)
References in this section to the statutory accounts of a broadcasting successor company are references to any accounts prepared by the company for the purposes of any provision of the Companies Act [Cap. 50].