Singapore legislation
Regulation 13
Regulation 13
Limitation of mutual shareholdings under section 59(2)(b) of Act
Subregulation 1
A qualified major stake company of a DFHC must not acquire or hold shares in the DFHC.
Subregulation 2
A DFHC must not cause or knowingly permit any of its qualified major stake companies to acquire or hold shares in the DFHC in contravention of paragraph (1).
Subregulation 3
In determining whether there is a contravention of paragraph (1) or (2), any control of voting power in a DFHC that is held by a qualified major stake company of that DFHC —
for the benefit of any person other than the qualified major stake company or any other qualified major stake company of that DFHC (called in this paragraph and paragraph (4) the beneficiary) under an obligation imposed under any written law, rule of law, contract or order of court; and
used or exercised by the qualified major stake company for the benefit of the beneficiary,is disregarded.
Subregulation 4
Paragraph (3) does not apply if —
the qualified major stake company is a licensed insurer, and the voting power is controlled by it through any of the insurance funds specified in regulation 9(3)(c)(i) to (iv); or
the Authority —
is of the opinion (having regard to the specific circumstances of the case including whether the qualified major stake company has investment and voting policies that comply with guidelines issued by the Authority) that the control of voting power in the DFHC is in fact not being used or exercised primarily for the benefit of the beneficiary; and
issues a declaration under paragraph (5) by written notice to the qualified major stake company.
Subregulation 5
For the purpose of paragraph (4)(b)(ii), the Authority may issue a declaration by written notice to the qualified major stake company that, starting on the date specified in the declaration, its control of voting power in the DFHC must be included in determining whether there is a contravention of paragraph (1) or (2).