Singapore legislation
Regulation 14
Regulation 14
Qualified major stake company over which DFHC has no effective control
Subregulation 1
Where a qualified major stake company falls within the definition of “affiliated company” of a DFHC under regulation 9(1)(a), (b), (c) or (e) but not regulation 9(1)(d), and the Authority is satisfied that —
the qualified major stake company is not under the effective control of the DFHC; and
the DFHC is not exposed to any material risk because of —
the qualified major stake company’s beneficial interest in the share capital, accumulated funds or contributed capital of any other company;
the qualified major stake company’s control of voting power in any other company; or
the qualified major stake company’s interest in any other company,the Authority may issue a declaration by written notice to the DFHC that, starting on the date specified in the declaration until such time as the declaration is revoked, any shares held by that qualified major stake company in the DFHC must be excluded for the purposes of determining whether there is a contravention of regulation 13(1) or (2).
Subregulation 2
The Authority may, at any time on or after making the declaration under paragraph (1), impose any condition, and if any condition is not complied with at any time, the Authority may revoke the declaration by written notice to the DFHC.
Subregulation 3
The Authority may add to, vary or revoke any condition imposed under paragraph (2).
Subregulation 4
Without affecting paragraph (2), the Authority may, by written notice to a DFHC, revoke a declaration made under paragraph (1) if the Authority is satisfied that —
the qualified major stake company has come under the effective control of the DFHC; or
the DFHC has become exposed to any material risk because of —
the qualified major stake company’s beneficial interest in the share capital, accumulated funds or contributed capital of any other company;
the qualified major stake company’s control of voting power in any other company; or
the qualified major stake company’s interest in any other company,and in such event, any shares held by that qualified major stake company in the DFHC must, starting on the date specified in the notice of revocation, be included in determining whether there is a contravention of regulation 13(1) or (2).
Subregulation 5
Without affecting paragraph (3), a declaration under paragraph (1) is automatically revoked if the qualified major stake company falls within the definition of “affiliated company” under regulation 9(1)(d), whether or not the qualified major stake company continues to fall within the definition of “affiliated company” under regulation 9(1)(a), (b), (c) or (e).