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1. The Ministry of Finance is conducting a public consultation
exercise to seek comments on the draft
Companies (Amendment No 2) Bill 2004.
2. The draft bill 2004 includes changes arising from
recommendations 2.18, 2.19, 2.21, 2.22, 2.24 and 5.8
made by the Company Legislation and Regulatory Framework
Committee ("CLRFC") in their Final Report
first published in October 2002 These recommendations
relates to the following:
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Abolishing the
concept of par value and authorized share capital. |
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Introducing
an alternative capital reduction process which does
not require court sanction. |
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Liberalising
the financial assistance restrictions to allow financial
assistance to be provided under additional circumstances. |
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Allowing share-buyback
to be funded out of profits as well as capital where
supported by a declaration of solvency. |
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Allowing repurchased
shares to be held as treasury shares. |
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Introducing a
more effective and efficient statutory form of merger/amalgamation
process. |
Please click here
if you wish to view the CLRFC Final Report containing
the recommendations. Please click here
for the highlights of the draft Bill.
PUBLIC CONSULTATION
3. MOF would like to invite interested parties to provide
comments on the draft Bill. Whilst specific queries
have been raised in the bill to facilitate the feedback
process, you may comment on any other matters not specifically
raised. A copy of the draft Bill can be downloaded here.
9. Respondents may send in their comments, in the prescribed
template, via:
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email to clrfc@mof.gov.sg
or |
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| b. |
fax to 6337 4134; or |
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| c. |
| post
to: |
Ministry
of Finance
100 High Street, #06-03
The Treasury
Singapore 179434 |
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The Ministry would request that all comments be submitted
by 20 September 2004. Thank you.
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