Singapore legislation

Clause 12

of Companies (Amendment) Bill

Clause 12

Amendment of section 172

Section 172 of the Companies Act is amended by deleting subsection (2) and substituting the following subsection:“(2) This section shall not prevent a company —

(a)

from purchasing and maintaining for any such officer insurance against any liability referred to in subsection (1) except where the liability arises out of conduct involving dishonesty or a wilful breach of duty; or

(b)

from indemnifying such officer or auditor against any liability incurred by him —

(i)

in defending any proceedings (whether civil or criminal) in which judgment is given in his favour or in which he is acquitted; or

(ii)

in connection with any application, in relation to such liability, in which relief is granted to him by the court.”.