Singapore legislation
Clause 34
Clause 34
Control of substantial shareholdings in exchange holding company
(1)
No person shall enter into any agreement to acquire shares by virtue of which he would, if the agreement is carried out, acquire a substantial shareholding in an exchange holding company without first notifying the Authority of his intention to enter into the agreement and obtaining the approval of the Authority to his entering into the agreement.
(2)
The Authority may grant its approval referred to in subsection (1) subject to such conditions or restrictions as the Authority may think fit.
(3)
Without prejudice to subsection (5), the Authority may, for the purposes of securing compliance with subsection (1) or any condition or restriction imposed under subsection (2), by notice in writing direct the transfer or disposal of all or any of the shares of the exchange holding company in which the substantial shareholder has or has had an interest.
(4)
Any person who receives a notice by the Authority under subsection (3) shall transfer or dispose of the number of shares of the exchange holding company which are the subject of such direction, and until such transfer or disposal —
no voting rights shall be exercisable in respect of that number of shares;
no shares of the exchange holding company shall be issued or offered (whether by way of rights, bonus or otherwise) in respect of that number of shares; and
no payment shall be made by the exchange holding company of any sums (whether by way of dividends or otherwise) in respect of that number of shares except in a liquidation of the exchange holding company.
(5)
Any person who contravenes subsection (1) or (4) or any condition or restriction imposed by the Authority under subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 and, in the case of a continuing offence, to a further fine not exceeding $1,000 for every day or part thereof during which the offence continues after conviction.