Section 32 — Exchange Control Act 1953

(1)

Where there is served on any person in Singapore a notice in writing that the Authority wishes any such requirements as are hereinafter mentioned to be complied with by any such body corporate as is specified in the Second Schedule (referred to in this subsection as a foreign company), and that person can, by doing or refraining from doing any act —

(a)

cause the foreign company to comply with any of the requirements;

(b)

remove any obstacle to the foreign company complying with any of the requirements; or

(c)

render it in any respect more probable that the foreign company will comply with any of the requirements,then, except so far as permission to the contrary may be given by the Authority, that person shall do, or, as the case may be, refrain from doing, that act.

(2)

The requirements with respect to which a notice referred to in subsection (1) may be given are as follows, that is to say, that the foreign company shall:

(a)

furnish to the Authority such particulars as to its assets and business as may be mentioned in the notice;

(b)

sell or procure the sale to an authorised dealer of any gold or specified currency mentioned in the notice, being gold or specified currency which it is entitled to sell or of which it is entitled to procure the sale;

(c)

declare and pay such dividend as may be mentioned in the notice;

(d)

realise any of its assets mentioned in the notice in such manner as may be so mentioned; and

(e)

refrain from selling, transferring, or doing anything which affects its rights or powers in relation to, any such Treasury bills or securities as may be mentioned in the notice.

(3)

Except with the permission of the Authority, no person resident in the scheduled territories shall in Singapore do any act whereby a body corporate which is by any means controlled (whether directly or indirectly) by persons resident in the scheduled territories ceases to be controlled by persons resident in the scheduled territories.

(4)

Subsection (3) shall not prohibit any person from selling any securities authorised to be dealt in on any recognised stock exchange in Singapore if the sale takes place in pursuance of an agreement entered into in the ordinary course of business on that stock exchange.

(5)

No person resident in the scheduled territories shall in Singapore do any act which involves, is in association with or is preparatory to any such transaction outside Singapore as is referred to in subsection (3).

(6)

Except with the permission of the Authority, no person resident in the scheduled territories shall in Singapore lend any money, Treasury bills or securities to any body corporate resident in the scheduled territories which is by any means controlled (whether directly or indirectly) by persons resident outside the scheduled territories.

(7)

Subsection (6) shall not apply where the lender, after making such inquiries as are reasonable in the circumstances of the case, does not know and has no reason to suspect that the body corporate is controlled as referred to in subsection (3).

(8)

No person resident in the scheduled territories shall in Singapore do any act which involves, is in association with or is preparatory to any such transaction outside Singapore as is referred to in subsection (6).

(9)

For the purposes of this section and of the Second Schedule, persons resident in or outside the scheduled territories shall be deemed to control a body corporate notwithstanding that other persons are associated with them in the control thereof if they can together override those other persons.

(10)

In this section, “security” includes a secondary security.