Singapore legislation
Clause 7
of Multi-Level Marketing and Pyramid Selling (Prohibition) Bill
Clause 7
Company which promotes a pyramid selling scheme or arrangement to cease promoting the same
(1)
Upon the coming into operation of this Act a company which promotes a multi-level marketing scheme or arrangement or pyramid selling scheme or arrangement (in this section and section 8 referred to as “the relevant company”) shall forthwith cease to promote that scheme or arrangement.
(2)
The relevant company shall within sixty days from the date of the coming into operation of this Act either —
resolve by special resolution that it be wound up voluntarily under paragraph (b) of subsection (1) of section 254 of the Companies Act; or
resolve by special resolution that it be wound up by the court and accordingly present a petition to the court under paragraph (a) of subsection (1) of section 217 of the Companies Act for an order that it be wound up.
(3)
If default is made by the relevant company in complying with subsection (1) or (2) that company and every officer thereof shall be guilty of an offence under this Act and shall be liable on conviction to a fine not exceeding thirty thousand dollars or to imprisonment for a term not exceeding five years or to both such fine and imprisonment.