Singapore legislation

Clause 55

of Companies (Amendment) Bill

Clause 55

Amendment of section 78C

Section 78C of the Companies Act is amended —

(a)

by deleting paragraph (a) of subsection (1);

(b)

by deleting subsection (2) and substituting the following subsection:“(2) Notwithstanding subsection (1), the company need not meet the solvency requirements if the reduction of share capital does not involve any of the following:

(a)

a reduction or distribution of cash or other assets by the company;

(b)

a release of any liability owed to the company.”; and

(c)

by deleting the words “22 days” in subsection (3)(b)(ii) and substituting the words “30 days”.