Singapore legislation
Clause 86
Clause 86
Amendment of section 168
Section 168 of the Companies Act is amended by inserting, immediately after subsection (1), the following subsections:“(1A) The requirement for approval by the company in subsection (1) shall not apply in respect of any payment to a director holding a salaried employment or office in the company by way of compensation for termination of employment pursuant to an existing legal obligation arising from an agreement made between the company and the director if —
the amount of the payment does not exceed the total emoluments of the director for the year immediately preceding his termination of employment; and
the particulars with respect to the proposed payment, including the amount thereof, have been disclosed to the members of the company upon or prior to the payment.(1B) For the purposes of subsection (1A) —
an existing legal obligation is an obligation of the company, or any corporation which is by virtue of section 6 deemed to be related to the company, that was not entered into in connection with, or in consequence of, the event giving rise to the payment for loss of office; and
if paragraph (a) or (b) of that subsection is not complied with, the amount received by the director shall be deemed to have been received by him on trust for the company.”.