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