In forceAmended2020 Revised Edition

Contents

Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 17 · Administration in Bankruptcy

384. Official Assignee not to incur further expenses if majority in value of debts owed to institutional creditors

Amended

Last amended by an amending law of 2023.

(1)

The Official Assignee is not liable to incur any expense in relation to the realisation and distribution of a bankrupt’s property, other than expenses in relation to payments made towards the target contribution —

(a)

if, and only so long as, the relevant condition is met; and

(b)

if the Official Assignee has given to every creditor who has filed a proof of debt, a notice in writing in accordance with subsection (2).

(2)

After the expiry of the time within which creditors are required under section 347(2) to file their proof of debt, if the Official Assignee is satisfied that the relevant condition is met, the Official Assignee may give to each of the bankrupt’s creditors who has filed a proof of debt, a notice in writing —

(a)

informing the creditors that the Official Assignee is satisfied that the relevant condition is met;

(b)

informing the creditors that they may wish to consider making an application under section 36 for the appointment of a person other than the Official Assignee to act as the trustee of the bankrupt’s estate; and

(c)

providing a summary of the administration of the bankrupt’s estate that contains such particulars as may be prescribed.

(3)

Nothing in this section relieves the Official Assignee of any obligation under section 339, 340, 341, 342, 343, 344 or 347.

(4)

In this section —

“annual sales turnover”, for a relevant period and in relation to an undertaking, means —

(a)

if the relevant period is a business year that consists of 12 months, the sales turnover of the undertaking in the relevant period; or

(b)

if the relevant period is a business year that does not consist of 12 months or is a period mentioned in paragraph (b) of the definition of “relevant period”, the amount calculated using the formula where —

(i)

S is the sales turnover of the undertaking in the relevant period; and

(ii)

B is the number of months in the relevant period;

“business year” means a period in respect of which an undertaking prepares or is required to prepare accounts;

“employee” means an individual who has entered into or works under a contract of service with an employer;

“institutional creditor”, in relation to a bankrupt, means a creditor that is —

(a)

a banking corporation;

(b)

a finance company licensed under the Finance Companies Act 1967;

(c)

a holder of a capital markets services licence granted under section 86 of the Securities and Futures Act 2001; or

(d)

an undertaking that —

(i)

in the relevant period, has an annual sales turnover of more than $100 million; and

(ii)

at the date of the bankruptcy application on which the bankrupt was adjudged bankrupt, has more than 200 employees;

“relevant condition”, in relation to a bankrupt, means a majority in value of the total debts of the bankrupt that have been proved (and are not withdrawn) are owed to one or more persons who are either an institutional creditor or a subsidiary of an institutional creditor;

“relevant period”, in relation to an undertaking, means —

(a)

the business year of the undertaking immediately preceding the date of the bankruptcy application on which the bankrupt was adjudged bankrupt; or

(b)

if there is no such business year, the period between the date of commencement of the business operations of the undertaking and the date of the bankruptcy application on which the bankrupt was adjudged bankrupt (both dates inclusive);

“sales turnover”, in relation to an undertaking, means the aggregate of the following amounts, after deducting sales rebates, goods and services tax and other taxes directly related to those amounts:

(c)

the amounts derived by that undertaking from the sale of products and the provision of services falling within the ordinary activities of that undertaking;

(d)

any other amounts derived from the business operations of that undertaking, but excluding gains from the sale of fixed assets, donations, grants, subsidies, subscriptions, interest, dividends, goods purchased for resale and investment income;

“undertaking” means any individual, or any body corporate, unincorporated body of persons or other entity, that is capable of carrying on commercial or economic activities relating to goods or services, but excludes a body corporate or unincorporate established by or under any public Act to perform or discharge a public function.

Terms defined in this Act

accounts
Defined · s 61
“accounts” has the meaning given by section 4(1) of the Companies Act 1967;
Open s 61
banking corporation
Defined · s 2
“banking corporation” means a bank that holds a valid licence under section 7 or 79 of the Banking Act 1970;
Open s 2
bankrupt
Defined · s 2
“bankrupt” means —(a)an individual debtor who has been adjudged bankrupt by a bankruptcy order; or(b)where a bankruptcy order has been made against a firm, each of the partners in the firm;
Open s 2
bankruptcy application
Defined · s 273
“bankruptcy application” means an application to the Court for a bankruptcy order;
Open s 273
company
Defined · s 2
“company” has the meaning given by section 4(1) of the Companies Act 1967;
Open s 2
creditor
Defined · s 273
“creditor”, in relation to a debtor proposing a voluntary arrangement under Part 14, means a creditor to whom the debtor owes a debt provable in bankruptcy;
Open s 273
debt
Defined · s 288
“debt” means any debt, or any liability to pay money, that is unsecured, present, certain, and of an amount that is fixed or liquidated;
Open s 288
goods
Defined · s 273
“goods” includes all chattels personal;
Open s 273
income
Defined · s 273
“income” includes all income, whether or not accruing in or derived from Singapore, and whether received in Singapore or elsewhere;
Open s 273
Official Assignee
Defined · s 2
“Official Assignee” means the Official Assignee appointed under section 16(1) and includes a Deputy Official Assignee, a Senior Assistant Official Assignee and an Assistant Official Assignee;
Open s 2
property
Defined · s 2
“property” includes —(a)money, goods, things in action, land and every description of property, wherever situated; and(b)obligations and every description of interest, whether present or future or vested or contingent, arising out of or incidental to property;
Open s 2
subsidiary
Defined · s 2
“subsidiary” has the meaning given by section 5 of the Companies Act 1967;
Open s 2
target contribution
Defined · s 273
“target contribution” means —(a)an amount equal to —(i)in any case where the bankruptcy is a repeat bankruptcy, 76 payments of monthly contributions determined in accordance with section 339; or(ii)in any other case, 52 payments of monthly contributions determined in accordance with section 339; or(b)if the amount referred to in paragraph (a) is varied by the Court under section 340(5)(a), 341(1) or 343(4)(a) or reduced by the Official Assignee under section 342(1) or 344(3), that amount as varied or reduced, as the case may be.
Open s 273
trustee
Defined · s 2
“trustee”, in relation to a bankruptcy and a bankrupt, means the trustee of the bankrupt’s estate and includes the Official Assignee when acting as trustee of the bankrupt’s estate;
Open s 2