Clause 20

by deleting the word “company” in subsection (1) and substituting the word “entity”;

by deleting subsections (2), (3) and (3A) and substituting the following subsections:“(2) The Authority must not grant its approval under subsection (1) if the entity carries on, whether as its principal business or otherwise, any prohibited business.(3) Despite subsection (2), the Authority may, in a particular case that comes within that subsection, grant its approval if it is satisfied that approval should be granted by reason of the exceptional circumstances of the case.(3A) An approval of the Authority under this section may be subject to such conditions as the Authority may determine, including any condition relating to the operations or activities of the entity concerned.”;

by deleting paragraph (a) of subsection (5) and substituting the following paragraph:“(a)disapply this section to any entity or class of entities, subject to such conditions as may be prescribed;”;

by deleting paragraph (c) of subsection (5) and substituting the following paragraph:“(c)provide that any interest or control referred to in the definition of “major stake” in subsection (7) that is acquired or held, directly or indirectly, by an entity in which a bank has, directly or indirectly, a major stake is to be treated as acquired or held by the bank.”;

by deleting the definition of “major stake” in subsection (7) and substituting the following definitions:“ “company” means a company incorporated under the Companies Act (Cap. 50) or any corresponding previous written law, or a company incorporated outside Singapore;“entity” means any body corporate or unincorporate, whether incorporated, formed or established in or outside Singapore;“limited liability partnership” has the same meaning as in section 2(1) of the Limited Liability Partnerships Act (Cap. 163A), and includes a limited liability partnership formed or established outside Singapore;“major stake”, in relation to an entity, means —

any beneficial interest exceeding 10% of the total number of issued shares or such other measure corresponding to shares in a company as may be prescribed;

control of over more than 10% of the voting power or such other measure corresponding to voting power in a company as may be prescribed; or

any interest in the entity, by reason of which the management of the entity is accustomed or under an obligation, whether formal or informal, to act in accordance with the bank’s directions, instructions or wishes, or where the bank is in a position to determine the policy of the entity;“management”, in relation to an entity, means —

if the entity is a company, its directors;

if the entity is a limited liability partnership, its partners or managers;

if the entity is any other partnership, its partners;

if the entity is a cooperative society, the members of its committee of management; or

if the entity is any other society, its officers,and includes such other person of the entity as the Authority may prescribe;”; and

by deleting the section heading and substituting the following section heading:“Major stake in entity”.