Singapore legislation

Clause 31

Other provisions in step-in arrangements

(1)

Without prejudice to section 30(3), where financial assistance is provided by the Government to a relevant licensee for the purpose of maintaining the reliability of the supply of services by the relevant licensee, a step-in order may do one or more of the following:

(a)

in relation to all or any securities of a specified description that have been issued by the relevant licensee, make provision for or in connection with or in consequence of the transfer of shares or securities in the relevant licensee to any of the prescribed transferees, including the extinguishment of rights of any specified description to subscribe for, or otherwise acquire, securities of the operator concerned or any of its subsidiaries; and

(b)

make provision for or in connection with or in consequence of the transfer of property, rights or liabilities of the relevant licensee to any of the prescribed transferees.

(2)

A step-in order as is described in subsection (1)(a) or (b) may contain any of the particular kinds of provisions as may be prescribed by the Minister by rules published in the Gazette.

(3)

If such a step-in order as is described in subsection (1)(a) or (b) is made, the Minister must, within a period of 3 months after the making of the step-in order, by notification published in the Gazette, establish a scheme for determining the amount of any compensation payable by the relevant prescribed transferee —

(a)

to persons who held the shares or securities immediately before they were so transferred;

(b)

to persons whose rights of any specified description to subscribe for, or otherwise acquire, securities are extinguished; or

(c)

to the operator whose property, rights or liabilities have been transferred,as the case may be.

(4)

Any scheme established under subsection (3) may make provision —

(a)

for the manner in which any compensation or consideration is to be assessed, including as to methods of calculation, valuation dates and matters to be taken into, or left out of, account in making valuations; and

(b)

for the assessment to be made by an independent valuer appointed by the Minister and as to the remuneration and expenses of such an independent valuer.

(5)

In subsection (1), “prescribed transferee” means —

(a)

the LTA;

(b)

a company that is wholly-owned by the Government; or

(c)

a nominee of the LTA.

Read in full context — Bus Services Industry Bill →