Singapore legislation

Clause 10

of Companies (Amendment) Bill

Clause 10

New section 50A

The Companies Act is amended by inserting, immediately after section 50, the following section:“Lodging supplementary document or replacement document50A.—

(1)

If the person making an offer or invitation to the public in respect of shares in or debentures of, or units of shares in or debentures of, a corporation becomes aware of —

(a)

a false or misleading statement in the prospectus or the profile statement;

(b)

an omission, from the prospectus or the profile statement, of information required by section 45 or 45A, as the case may be; or

(c)

a new circumstance that —

(i)

has arisen since the prospectus or the profile statement was registered by the Registrar; and (ii)would have been required by section 45 or the Fifth Schedule to be included in the prospectus, or by section 45A to be included in the profile statement, if it had arisen before the prospectus or the profile statement was registered,that is materially adverse from the point of view of an investor, the person may lodge a supplementary or replacement prospectus or a supplementary or replacement profile statement (referred to in this section as a supplementary or replacement document, as the case may be) with the Registrar.(2) At the beginning of a supplementary document, there shall be —

(a)

a statement that it is a supplementary prospectus or a supplementary profile statement, as the case may be; (b)an identification of the prospectus or the profile statement it supplements;

(c)

an identification of any previous supplementary document lodged with the Registrar in relation to the offer or invitation; and (d)a statement that it is to be read together with the prospectus or the profile statement it supplements and any previous supplementary document.(3) At the beginning of a replacement document, there shall be —

(a)

a statement that it is a replacement prospectus or a replacement profile statement, as the case may be; and

(b)

an identification of the prospectus or the profile statement it replaces.(4) The supplementary document and the replacement document must be dated with the date on which they are lodged with the Registrar.(5) The person who lodges a supplementary document or the corporation concerned shall take reasonable steps to inform investors of such lodgment and make available the supplementary document free of charge to them, whereupon, for the purposes of the application of this Part to events that occur after the lodgment of the supplementary document —

(a)

where the supplementary document is a supplementary prospectus, the prospectus shall be taken to be the prospectus together with the supplementary prospectus; and

(b)

where the supplementary document is a supplementary profile statement, the profile statement shall be taken to be the profile statement together with the supplementary profile statement.(6) The person who lodges a replacement document or the corporation concerned shall take reasonable steps to inform investors of such lodgment and make available the replacement document free of charge to them, whereupon, for the purposes of the application of this Part to events that occur after the lodgment of the replacement document —

(a)

where the replacement document is a replacement prospectus, the prospectus shall be taken to be the prospectus together with the replacement prospectus; and

(b)

where the replacement document is a replacement profile statement, the profile statement shall be taken to be the profile statement together with the replacement profile statement.”.