Presidential Elections (Certificate of Eligibility) Regulations 2017

In these Regulations, unless the context otherwise requires —

Any notice or notification required to be given under these Regulations must be given in writing.

The Committee may immediately reject an application without considering its merits if the application is —

If the Committee rejects an application under paragraph (1), the Committee must immediately inform the applicant in accordance with regulation 11.

The Committee may, for the purposes of deciding an application —

The Committee may reject an application if the applicant or any referee of the applicant refuses to provide any information required by the Committee or to be interviewed by the Committee.

The Committee may consider on its own motion whether an applicant satisfies Article 19(3)(c) or (4)(b), including for one or both of the periods under Article 19(3)(d) or (4)(c).

To avoid doubt, nothing in paragraph (1) requires the Committee to consider whether an applicant satisfies Article 19(3)(c) or (4)(b) when the applicant did not seek to rely on those provisions.

If the Committee rejects an application, the Committee must give its reasons in writing to the applicant.

Subject to paragraph (3), the Committee must not publish its reasons for rejecting an application.

The Committee may publish its reasons for rejecting an application in the following circumstances:

In this Part, unless the context otherwise requires —

In this Part, a reference to the accounting standards applied by an entity means the accounting standards applied by the entity in accordance with the legal and regulatory requirements applicable to the entity.

An applicant who seeks to satisfy Article 19(4)(a), (b) or (c) on the basis of his or her service in a company limited by shares and incorporated under the Companies Act 1967 must submit the financial statements required by this regulation together with his or her application.

Subject to paragraph (3), for each relevant financial year of the company, the applicant must submit the financial statements (including the audit report and the directors’ statement in relation to those financial statements) that are required by the Companies Act 1967 to be laid before the company at its annual general meeting.

Paragraph (2) does not apply to the financial statements for a relevant financial year if, at the date of the application —

If —

For every relevant financial year of the company for which the applicant does not submit the financial statements required under paragraph (2), the applicant must submit —

Each set of financial statements required under paragraph (4) or (5)(b) or (c) must be accompanied by —

An applicant who seeks to satisfy Article 19(4)(a), (b) or (c) in relation to an entity in the following scenarios must submit the financial statements required by this regulation together with his or her application:

Subject to paragraph (3), for each relevant financial year of the entity, the applicant must submit the financial statements (including any audit report, directors’ statement or other material) that are required to be presented, lodged or otherwise prepared by the written law under which the entity is constituted or by the law of the country where the entity is constituted.

Paragraph (2) does not apply to the financial statements for a relevant financial year if, at the date of the application —

If —

For each relevant financial year of the entity for which the applicant is not required to submit financial statements under paragraph (2), the applicant must submit —

Each set of financial statements required under paragraph (4) or (5)(b) or (c) must be accompanied by —

Paragraph (6) does not apply to a set of financial statements if a declaration under that paragraph, or a substantially similar declaration, is already part of the financial statements.

If any set of financial statements that an applicant is required to submit under paragraph (2), (4) or (5) is not prepared according to any accepted accounting standards, the applicant must submit, for that set of financial statements (called in this paragraph the original financial statements) —

An applicant must submit the financial statements of an entity if —

The duty in paragraph (1) ceases when the Committee informs the applicant of its decision.

If an applicant who seeks to satisfy Article 19(4)(a), (b) or (c) in relation to his or her service in an entity does not submit any financial statements for any period of service that is relevant to his or her application, the applicant must give a personal assurance for that period.

The personal assurance must state that nothing has occurred during that period that may adversely affect the financial position and financial performance of the entity in a way that is material to the application.

An applicant who seeks to satisfy Article 19(4)(a), (b) or (c) must explain any failure to submit any statement, document or information required by regulation 14, 15 or 16.

The provision of a personal assurance or explanation under this regulation does not affect the Committee’s power to reject an application on the ground that any required statement, document or information was not submitted.

An applicant who seeks to satisfy Article 19(4)(a), (b) or (c) must, after submitting his or her application, notify the Committee of any change of circumstances that may negatively affect the financial position and financial performance of the entity for any period that is relevant to the application.

The duty in paragraph (1) ceases when the Committee informs the applicant of its decision.

The Committee may form its own view on the sufficiency and reliability of any information submitted by an applicant seeking to satisfy Article 19(4)(a), (b) or (c).

Without limiting regulations 5 and 6, if the Committee considers that the information submitted by an applicant is insufficient or insufficiently reliable, the Committee may —

Without limiting paragraph (1), the Committee may consider the following factors when evaluating the financial statements of an entity:

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).

If a company is not the parent of a group, the amount of shareholders’ equity the company has at a point in time is the total equity of the company at that point in time.

If a company is the parent of a group, the amount of shareholders’ equity the company has at a point in time is the total consolidated equity of the group at that point in time, and includes the equity attributable to any non-controlling or minority interests in the group.

The terms used in the definitions in paragraphs (1) and (2) are to be interpreted in accordance with the Singapore Accounting Standards, as applied by the company for the relevant point in time.

If the amount of shareholder equity a company has at a point in time must be converted to Singapore dollars under regulation 22(5), the conversion must be done in accordance with the Singapore Accounting Standards, as applied by the company for that point in time.

For the purposes of paragraph (1) —

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

First, identify all the periods during which the applicant was the chief executive of the company.

Second, identify the financial statements to be used for each of those periods as follows:

Third, find out the amount of profit after tax, as defined in regulation 27, that the company makes for each of the financial years or financial periods covered by the financial statements selected.

Fourth, if the amounts of profit after tax for those financial years and financial periods are presented in different currencies, convert every amount that is presented in a foreign currency to Singapore dollars in accordance with regulation 28.

Fifth, if the applicant served as the chief executive of the company for only a part of any of those financial years or financial periods, pro‑rate the amount of profit after tax made by the company for that financial year or financial period according to regulation 29.

Sixth, add the amount of profit after tax the company makes for the periods identified under paragraph (2), after any conversion under paragraph (5) or pro‑ration under paragraph (6).

If the step in paragraph (7) yields a positive number, the applicant satisfies Article 19(4)(a)(iii) in relation to 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. The company’s financial year ends on 31 December. The company has reliable audited annual financial statements for the financial years that ended on 31 December 2014, 31 December 2015 and 31 December 2016, respectively. The applicable financial statements showed the company’s profit after tax for the full financial years to be $5 million, $12 million and $7 million, respectively. At the date of the writ, the company, which is listed, had also announced its unaudited financial statements for the quarter that ended on 31 March 2017, which showed a loss after tax of $5 million. Applying the step in paragraph (6), the applicant served as chief executive for 334 days out of 365 days in the financial year that ended on 31 December 2014, and the pro‑rated profit after tax for this period of service would be approximately $4.58 million (being $5 million × 334 days/365 days). Applying the step in paragraph (7), the amount yielded would be approximately $18.58 million ($4.58 million + $12 million + $7 million – $5 million), a positive number, and the applicant satisfies Article 19(4)(a)(iii).

If a company is not the parent of a group, the amount of profit after tax that the company makes for a period is the amount of profit after tax measured at the company level for that period, and includes losses after tax.

If a company is the parent of a group, the amount of profit after tax that the company makes for a period is the amount of consolidated profit after tax attributable to the owners of the company and to any non-controlling or minority interests in the group for that period, and includes consolidated losses after tax.

The terms used in the definitions in paragraphs (1) and (2) are to be interpreted in accordance with the Singapore Accounting Standards, as applied by the company for the relevant period.

If a company’s profits after tax for a financial year or financial period must be converted to Singapore dollars under regulation 26(5), the conversion must be done in accordance with the Singapore Accounting Standards, as applied by the company for that financial year or financial period.

For the purposes of paragraph (1) —

The Committee may modify Divisions 2 and 3 in their application to a case to which those Divisions would otherwise apply if the Committee considers that, owing to any unusual circumstances, the application of those Divisions would not provide an accurate assessment of whether an applicant satisfies Article 19(4)(a)(ii) and (iii).

In making any modification under this regulation, the Committee must keep to the spirit and intent of Divisions 2 and 3 and Article 19(4)(a)(ii) and (iii).

The Committee must apply Division 2, with any necessary modification —

The Committee must apply Division 3, with any necessary modification, to decide whether an applicant satisfies Article 19(4)(a)(iii) in relation to a company that prepares its financial statements in accordance with an accounting framework other than the Singapore Accounting Standards.

The Committee may apply Divisions 2 and 3, with any necessary modification, for the purposes of Article 19(4)(b).

In making any modification under this regulation, the Committee must keep to the spirit and intent of Divisions 2 and 3 and the relevant provisions of Article 19.

This regulation prescribes what constitutes an insolvency event for the purposes of Article 19(4)(a)(iv).

A company incorporated under the Companies Act 1967 is subject to an insolvency event if —

A foreign company registered under the Companies Act 1967 is subject to an insolvency event if —

The Chairman may appoint a public officer to be the Secretary to the Committee.

The Secretary may convey any decision, direction, request or information on behalf of the Committee, and may also perform such other duties as the Chairman may assign.

The office of the Secretary is to be at the Elections Department.

The Returning Officer must publish the application forms submitted by every person nominated as a candidate.

For the purposes of paragraph (1), the application forms —

Before publishing any application form, the Returning Officer must redact the particulars that are required to be redacted under the form.

To avoid doubt, this regulation does not require the publication of the character references and other supporting documents accompanying an application form.