Singapore legislation

Clause 129

Disqualification of liquidators

(1)

Subject to this section, a person must not, except with the leave of the Court, consent to be appointed, and must not act as liquidator of a VCC —

(a)

if the person is not an approved liquidator;

(b)

if the person is indebted to the VCC, any sub-fund of the VCC or a related corporation of the VCC in an amount exceeding $2,500;

(c)

if the person is —

(i)

an officer of the VCC;

(ii)

a partner, an employer or an employee of an officer of the VCC;

(iii)

a partner or an employee of an employee of an officer of the VCC;

(iv)

the manager of the VCC, the custodian of the VCC (being a non-umbrella VCC) or the custodian of a sub-fund of the VCC; or

(v)

an officer or employee of such manager or custodian;

(d)

if the person is an undischarged bankrupt;

(e)

if the person has assigned the person’s estate for the benefit of the person’s creditors or has made an arrangement with the person’s creditors pursuant to any law relating to bankruptcy; or

(f)

if the person has been convicted of an offence involving fraud or dishonesty punishable on conviction by imprisonment for 3 months or more.

(2)

Subsection (1)(a) and (c) does not apply to —

(a)

a members’ voluntary winding up; or

(b)

a creditors’ voluntary winding up, if by a resolution carried by a majority of the creditors in number and value present in person or by proxy and voting at a meeting of which 7 days’ notice has been given to every creditor stating the object of the meeting, it is determined that that provision does not so apply.

(3)

For the purposes of subsection (1) —

(a)

a person is treated as an officer of a VCC if the person is an officer of a related corporation of the VCC or has, at any time within the preceding period of 24 months, been an officer or a promoter of the VCC or of such a corporation; and

(b)

a person is treated as a manager of the VCC, a custodian of the VCC (being a non-umbrella VCC) or the custodian of a sub-fund of the VCC if it has, at any time within the preceding period of 24 months, been such manager or custodian.

(4)

A person must not be appointed as liquidator of a VCC unless the person has prior to such appointment consented in writing to act as such liquidator.

(5)

A person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $2,000.

(6)

In this section —

(a)

a person is an approved liquidator if —

(i)

the person falls within a class of persons declared as approved liquidators under section 9(1) of the Companies Act; or

(ii)

the person has been approved under section 9(2) of the Companies Act as a liquidator and the approval has not been revoked; and

(b)

a person is indebted to a sub-fund if the debt is incurred in relation to the sub-fund.

Read in full context — Variable Capital Companies Bill →