Singapore legislation
Regulation 5
of Gas (Transfer of Property, Rights, Obligations and Liabilities under section 98) Regulations
Regulation 5
Payment by PowerGas
Subregulation 1
This regulation shall apply in relation to regulation 4(a).
Subregulation 2
Payment of the net book value of the Assets specified in regulation 4(a) shall be made as follows:
PowerGas shall, on the Appointed Day, pay to SembGas 98% of the net book value of base assets as of the Appointed Day using a 40-year depreciation period, determined in accordance with the letter dated 21st July 2008 from the appointed auditor to SembGas and PowerGas;
where there is a difference between the Assets and the base assets referred to in sub-paragraph (a), whether as a result of any addition, removal or substitution, SembGas shall —
no later than 14 days after the Appointed Day, require the appointed auditor to determine the net book value of the Assets as of the Appointed Day using a 40-year depreciation period; and
immediately upon SembGas’ receipt of the determination of the appointed auditor referred to in sub-paragraph (i), provide PowerGas with a copy of the same;
where the net book value of the Assets determined under sub-paragraph (b)(i) exceeds the amount specified in sub-paragraph (a), PowerGas shall pay the difference to SembGas within 5 business days of PowerGas’ receipt from SembGas of a copy of the determination of the appointed auditor referred to in sub-paragraph (b)(i); and
where the amount specified in sub-paragraph (a) exceeds the net book value of the Assets determined under sub-paragraph (b)(i), SembGas shall refund to PowerGas the difference within 5 business days of the date SembGas received the determination of the appointed auditor referred to in sub-paragraph (b)(i).
Subregulation 3
PowerGas shall make the payment referred to in paragraph (2)(a) and the payment referred to in paragraph (2)(c), if any, by electronic transfer to such bank account maintained with a bank licensed by the Monetary Authority of Singapore as SembGas may specify in writing.
Subregulation 4
SembGas shall make the refund referred to in paragraph (2)(d), if any, by electronic transfer to such bank account maintained with a bank licensed by the Monetary Authority of Singapore as PowerGas may specify in writing.
Subregulation 5
If any person fails to comply with paragraph (2)(a) or (c), that person shall be guilty of an offence and shall be liable on conviction to a fine not exceeding 10% of the annual turnover of PowerGas’ gas business ascertained from its latest audited accounts, or an amount not exceeding $1 million, whichever is the higher, or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $100,000 for every day or part thereof during which the offence continues after conviction.
Subregulation 6
If any person fails to comply with paragraph (2)(b) or (d), that person shall be guilty of an offence and shall be liable on conviction to a fine not exceeding 10% of the annual turnover of SembGas’ gas business ascertained from its latest audited accounts, or an amount not exceeding $1 million, whichever is the higher, or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $100,000 for every day or part thereof during which the offence continues after conviction.
Subregulation 7
The obligation of PowerGas to comply with paragraph (2)(a) or (c) shall be a duty owed to SembGas and any breach of such duty shall be actionable at the suit or instance of SembGas who shall have a right of action for relief in civil proceedings in a court under this regulation against PowerGas.
Subregulation 8
The obligation of SembGas to comply with paragraph (2)(b) or (d) shall be a duty owed to PowerGas and any breach of such duty shall be actionable at the suit or instance of PowerGas who shall have a right of action for relief in civil proceedings in a court under this regulation against SembGas.