Singapore legislation

Clause 29

Segregated assets and liabilities of sub-funds

(1)

Despite any written law or rule of law to the contrary —

(a)

the assets of a sub-fund of an umbrella VCC must not be used to discharge any liability of the VCC or any other sub‑fund of the VCC, including in the winding up of the VCC or the other sub-fund; and

(b)

any liability of a sub-fund of an umbrella VCC must be discharged solely out of the assets of that sub‑fund, including in the winding up of the sub‑fund.

(2)

Any provision of the constitution of an umbrella VCC, an agreement, a contract or otherwise, is void to the extent that it is inconsistent with subsection (1), and any application of or agreement to apply assets in contravention of subsection (1) is likewise void.

(3)

An umbrella VCC may allocate any assets or liabilities —

(a)

that it holds or incurs on behalf of its sub‑funds or in order to enable the operation of the sub‑funds; and

(b)

that are not attributable to any particular sub‑fund,between its sub-funds in a manner that it considers fair to shareholders.

(4)

Where an umbrella VCC without reasonable excuse contravenes subsection (1), the VCC and every officer of the VCC who is in default shall each be guilty of an offence and shall each be liable on conviction —

(a)

if the offence was committed with intent to defraud any person, to a fine not exceeding $150,000; or

(b)

in any other case, to a fine not exceeding $50,000.

Read in full context — Variable Capital Companies Bill →