Singapore legislation

Section 30B

of Electricity Act 2001

Section 30B

Control of acquisition of equity interest in designated electricity licensee, etc.

Amended by18/200642/201818/200618/200642/201818/200618/200642/201842/201818/200618/200618/200642/2018

(1)

A designated electricity licensee, a designated entity or the trustee-manager of a designated business trust must give notice in writing to the Authority if any person acquires equity interest in the licensee, the entity or the business trust, respectively, whether through a series of transactions over a period of time or otherwise, that would result in that person holding 5% or more but less than 12% of the total equity interest in the licensee, the entity or the business trust, respectively.

Amended by18/2006

(2)

The notice under subsection (1) must be given within 5 days after the designated electricity licensee, the designated entity or the trustee‑manager of the designated business trust (as the case may be) becomes aware of the acquisition mentioned in that subsection.

Amended by42/2018

(3)

No person may, whether through a series of transactions over a period of time or otherwise, become a 12% controller, a 30% controller or an indirect controller of a designated electricity licensee, a designated entity or a designated business trust without obtaining the prior written approval of the Authority.

Amended by18/2006

(4)

No person may acquire as a going concern —

(a)

the business, or any part of the business, of a designated electricity licensee conducted pursuant to its licence; (b)the business, or any part of the business, of a designated entity which relates to its transmission system or any part thereof; or

(c)

the business, or any part of the business, of a designated business trust relating to a transmission system or any part of a transmission system in respect of which, wholly or in part, the business trust is established,unless the person, and the licensee, the entity or the trustee‑manager of the business trust (as the case may be) obtain the prior written approval of the Authority.

Amended by18/200642/2018

(5)

The Authority may approve an application of a person under subsection (3) if the Authority is satisfied that —

(a)

the person is a fit and proper person;

(b)

having regard to the person’s likely influence, the designated electricity licensee, the designated entity or the trustee-manager of the designated business trust (as the case may be) will continue to conduct its business prudently and comply with the provisions of this Act; and

(c)

it is in the public interest to do so.

Amended by18/2006

(6)

The Authority may approve an application under subsection (4) if the Authority is satisfied that —

(a)

the person acquiring the business is a fit and proper person;

(b)

the acquisition will not affect the security and reliability of the supply of electricity to the public; and

(c)

it is in the public interest to do so.

Amended by18/2006

(7)

Any approval by the Authority under this section may be granted subject to such conditions as the Authority may determine, including but not limited to any condition —

(a)

restricting the disposal or further acquisition of equity interests or voting power in the designated electricity licensee, designated entity or designated business trust; or

(b)

restricting the exercise of voting power in the designated electricity licensee, designated entity or designated business trust.

Amended by42/2018

(8)

The Authority may at any time add to, vary or revoke any condition imposed under this section.

Amended by42/2018

(9)

Any condition imposed by the Authority under this section has effect despite the provisions of any other written law or anything contained in the memorandum or articles of association, trust deed or other constitution of the licensee, the entity or the business trust.

Amended by18/2006

(10)

Any approval granted by the Authority under this section is without prejudice to the operation of Part 7.

Amended by18/2006

(11)

In this section —

Amended by18/200642/2018

Definition

“12% controller” means a person, not being a 30% controller, who, alone or together with the person’s associates —

(a)

holds 12% or more of the total equity interest in; or

(b)

is in a position to control 12% or more of the voting power in,the licensee, the entity or the business trust;

Definition

“30% controller” means a person who, alone or together with the person’s associates —

(a)

holds 30% or more of the total equity interest in; or

(b)

is in a position to control 30% or more of the voting power in,the licensee, the entity or the business trust;

Definition

“indirect controller” means any person, whether acting alone or together with any other person, and with or without holding equity interest or controlling voting power in the licensee, the entity or the business trust, as the case may be —

(a)

in accordance with whose directions, instructions or wishes the directors of the licensee, the directors or other officers of the entity, or the trustee-manager of the business trust are accustomed or under an obligation, whether formal or informal, to act; or

(b)

who is in a position to determine the policy of the licensee, the entity or the business trust,but does not include —

(c)

in the case of the licensee, a person who is the chief executive officer, a director or the chairperson of the board of directors of the licensee whose appointment as such has been approved by the Authority under section 30G; or

(d)

a person in accordance with whose directions, instructions or wishes the directors of the licensee, the directors or other officers of the entity or the trustee‑manager of the business trust are accustomed to act by reason only that they act on advice given by the person in the person’s professional capacity.

Amended by18/200642/2018
Section 30B — Electricity Act 2001 | laws.sg