Regulation 22

To decide whether an applicant satisfies Article 19(4)(a)(ii) in relation to his or her service as the chief executive of a company, perform the following steps.

First, identify the applicant’s most recent 3‑year period of service as the chief executive of the company, as at the date of the writ.

Second, identify the following 3 points in time within that 3‑year period:Conditions3 points1.There are reliable audited financial statements for each of the 3 financial years that ended during that 3‑year period.The last day of each of those 3 financial years.2.There are reliable audited financial statements for the first 2 financial years that ended during that 3‑year period, but not for the third financial year that ended during that 3‑year period.The last day of each of the first 2 financial years in that 3‑year period, and the last day of the last financial period in that 3‑year period for which the applicant has submitted reliable financial statements.3.Any other case.Any 3 points within that 3‑year period that the Committee considers appropriate.

Third, find out the amount of shareholders’ equity, as defined in regulation 23, that the company has at each of those 3 points in time.

Fourth, if the amount of shareholders’ equity the company has at any of those 3 points in time is presented in a foreign currency, convert the amount to Singapore dollars in accordance with regulation 24.

Fifth, add the amount of shareholder’s equity the company has at each of those 3 points in time (after any conversion under paragraph (5)), and divide the sum by 3.

If the step in paragraph (6) yields an amount equal to or greater than $500 million, the applicant satisfies Article 19(4)(a)(ii) in relation to his or her service as the chief executive of the company.IllustrationAt the date of the writ, the applicant’s entire period of service as the chief executive of a company was from 1 February 2014 to 31 March 2017. His or her most recent 3‑year period of service as the chief executive would therefore be 1 April 2014 to 31 March 2017. The company’s financial year ends on 31 December. The company has reliable audited financial statements for the financial years that ended on 31 December 2014, 31 December 2015 and 31 December 2016, respectively. These would therefore be the 3 points selected under paragraph (3). The applicable financial statements show the company’s shareholders’ equity to be $480 million, $500 million and $526 million, respectively, at these 3 points in time. Applying the step in paragraph (5), the amount yielded would be $502 million and the applicant satisfies Article 19(4)(a)(ii).