Singapore legislation

Clause 27

of Social Residential Homes Bill

Clause 27

Step‑in order

(1)

The Minister may make an order under this section (called in this Part a step‑in order) if —

(a)

the licence of a licensee is suspended, revoked or surrendered;

(b)

a licensee —

(i)

is, or is likely to be, declared a bankrupt;

(ii)

has gone, or is likely to go, into compulsory or voluntary liquidation other than for the purpose of amalgamation or reconstruction; or

(iii)

is, or is likely to be, placed under the judicial management of a judicial manager under any written law relating to the insolvency of companies;

(c)

a licensee is contravening or not complying with any provision of this Act;

(d)

a licensee is operating the licensable SRH to which the licensee’s licence relates in a manner that is detrimental, or is likely to be detrimental, to the safety, welfare or wellbeing of the residents of the licensable SRH; or

(e)

the Minister considers that it is in the public interest to do so,and the Director‑General has given the Minister a written opinion that it is necessary to take over the operation, or any part of the operation, of the licensable SRH to ensure the safety, welfare or wellbeing of the residents of the licensable SRH.

(2)

Before a step‑in order is made under subsection (1), but subject to subsection (3), the Minister must give the licensee concerned a reasonable opportunity to make written representations in respect of the proposed step‑in order.

(3)

Where the Minister is of the opinion that it is necessary to make a step‑in order on an expedited basis (called in this Part an expedited step‑in order) in order to protect the safety, welfare or wellbeing of the residents of the licensable SRH, the Minister may make an expedited step‑in order, which takes effect on the date the order is served on the licensee.

(4)

A step‑in order or an expedited step‑in order —

(a)

may order the licensee —

(i)

to revoke the appointment of all or any of the licensee’s key appointment holders, and appoint another individual or other individuals as the licensee’s key appointment holder or holders for the period specified in that order;

(ii)

to revoke the appointment of the person‑in‑charge of the licensable SRH, and appoint another individual as the licensable SRH’s person‑in‑charge for the period specified in that order;

(iii)

to transfer the residents of the licensable SRH to the care of another licensee for the period specified in that order;

(iv)

to appoint another licensee to operate the licensable SRH for the period specified in that order; and

(v)

to appoint a person to advise the licensee on the proper conduct of the licensee’s business or the operation of the licensable SRH;

(b)

may authorise the Director‑General —

(i)

to directly take over, or appoint a step‑in operator to take over, the operation, or a specified part of the operation, of the licensable SRH; and

(ii)

to do any of the things mentioned in paragraph (a);

(c)

may specify that —

(i)

the step‑in operator has the functions and powers in relation to the operation of the licensable SRH that are specified in that order;

(ii)

the licensee is to stop operating the licensable SRH on and from a specified date;

(iii)

the step‑in operator must have access to, and take control or management of, the premises or other assets and other property (including intellectual property), licences and employees used or required by the licensee for the purpose of operating the licensable SRH; and

(iv)

the Director‑General must have access to, and be able to make copies of or take extracts from, any document or record in the possession or under the control of the licensee for the purpose of that order;

(d)

where an order mentioned in paragraph (a)(iii) or (iv) is made, may specify, in addition to any matter that may be specified under paragraph (c), that —

(i)

the licensee must notify the Director‑General of the identity of the other licensee mentioned in paragraph (a)(iii) or (iv); and

(ii)

the other licensee must have access to, and be able to make copies of or take extracts from, any document or record in the possession or under the control of the firstmentioned licensee for the purpose of that order; and

(e)

may contain ancillary directions —

(i)

about how the costs of, and revenue generated from, operating the licensable SRH are to be dealt with;

(ii)

that may fix the remuneration and expenses to be paid by the licensee concerned to any person appointed under paragraph (a)(v) to advise the licensee on the proper conduct of the licensee’s business or the operation of the licensable SRH;

(iii)

specifying the period for which the step‑in order or expedited step‑in order applies; and

(iv)

specifying any other conditions that may apply.

(5)

The Minister’s decision under subsection (1) or (3), or both, is final.

(6)

A step‑in order or an expedited step‑in order operates to the exclusion of rights that are inconsistent with the step‑in order or expedited step‑in order, as the case may be.

(7)

Subject to subsections (8) and (9), the licensee —

(a)

must facilitate the handover of the operation of the licensable SRH to the step‑in operator as specified in the step‑in order or expedited step‑in order, as the case may be;

(b)

must not obstruct the step‑in operator’s access to the property of the licensee or the step‑in operator’s exercise of the step‑in operator’s responsibilities under this section; and

(c)

must comply with reasonable directions given by the step‑in operator in the step‑in operator’s exercise of the step‑in operator’s responsibilities under this section.

(8)

Where a step‑in order or an expedited step‑in order mentioned in subsection (4)(a)(iii) is made, the licensee must facilitate the transfer of the residents of the licensable SRH to the care of the other licensee mentioned in that provision.

(9)

Where a step‑in order or an expedited step‑in order mentioned in subsection (4)(a)(iv) is made, the licensee —

(a)

must facilitate the operation of the licensable SRH by the other licensee mentioned in that provision; and

(b)

must not obstruct that other licensee’s access to and use of the property of the firstmentioned licensee for the purpose of operating the licensable SRH.

(10)

A licensee who fails to comply with subsection (7), (8) or (9) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $1,000 for every day or part of a day during which the offence continues after conviction.