Clause 35

by inserting, immediately after the word “company” in the second line of subsection (1), the words “(other than an exempt private company)”;

by deleting subsections (2), (3) and (4) and substituting the following subsections:“(2) Subsection (1) shall extend to apply to a loan, guarantee or security in connection with a loan made by a company to another company where such company is incorporated outside Singapore, if a director or directors of the first-mentioned company —

is or together are interested in shares in the other company of the nominal value described in subsection (1); or

in a case where the other company does not have a share capital, exercises or together exercises control over the other company whether by reason of having the power to appoint directors or otherwise.(3) Subsection (1) shall not apply —

to anything done by a company where the other company is its subsidiary or holding company or a subsidiary of its holding company; or

to a company, whose ordinary business includes the lending of money or the giving of guarantees in connection with loans made by other persons, to anything done by the company in the ordinary course of that business if the activities of that company are regulated by any written law relating to banking, finance companies or insurance or are subject to supervision by the Monetary Authority of Singapore.(4) For the purposes of this section, an interest of a member of a director’s family shall be treated as the interest of the director and the words “member of a director’s family” shall include his spouse, son, adopted son, step-son, daughter, adopted daughter and step-daughter.”; and

by inserting, immediately after subsection (4), the following subsections:“(5) Nothing in this section shall operate to prevent the company from recovering the amount of any loan or amount for which it became liable under any guarantee entered into or in respect of any security given contrary to this section.(6) Where a company contravenes this section, any director who authorises the making of any loan, the entering into of any guarantee or the providing of any security contrary to this section shall be guilty of an offence and shall be liable on conviction to imprisonment for a term not exceeding two years or to a fine not exceeding twenty thousand dollars.”.