Singapore legislation

Regulation 4

When directors considered to be independent from substantial shareholder

Subregulation 1

A director of a trustee-manager of a registered business trust is considered to be independent from a substantial shareholder of the trustee-manager if he is not that substantial shareholder of the trustee-manager or is not connected to that substantial shareholder of the trustee-manager.

Subregulation 2

For the purposes of paragraph (1), a person is connected to a substantial shareholder if —

(a)

in the case where the substantial shareholder is an individual, the person is —

(i)

a member of the immediate family of the substantial shareholder;

(ii)

a partner of a firm of which the substantial shareholder is also a partner; or

(iii)

accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the substantial shareholder; or

(b)

in the case where the substantial shareholder is a corporation, the person is —

(i)

employed by the substantial shareholder;

(ii)

employed by a subsidiary or an associated company of the substantial shareholder;

(iii)

a director of the substantial shareholder;

(iv)

an executive director of a subsidiary or an associated company of the substantial shareholder;

(v)

a non-executive director of a subsidiary or an associated company of the substantial shareholder, where the subsidiary or associated company is not the trustee-manager;

(vi)

a partner of a firm of which the substantial shareholder is also a partner; or

(vii)

accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the substantial shareholder.

Read in full context — Business Trusts Regulations →