Singapore legislation

Clause 22

of COVID-19 (Temporary Measures) Bill

Clause 22

Modifications to Companies Act

(1)

During the prescribed period, the Companies Act (including that Act as applied by the Variable Capital Companies Act 2018) applies as if —

(a)

the reference in section 254(2)(a) of the Companies Act to “$10,000” were a reference to “$100,000”; and

(b)

the reference in section 254(2)(a) of the Companies Act to “3 weeks” were a reference to “6 months”.

(2)

For the purpose of section 339(3) of the Companies Act (including that provision as applied by the Variable Capital Companies Act 2018), an officer of the company or (as the case may be) an officer, the manager or the custodian of the variable capital company is not to be treated as having no reasonable or probable ground of expectation of the company or variable capital company being able to pay a debt if the debt is incurred —

(a)

in the ordinary course of the company’s or variable capital company’s business;

(b)

during the prescribed period; and

(c)

before the appointment of a judicial manager or liquidator of the company or variable capital company.