This content is from: Local Insights

Singapore

The Singapore Stock Exchange introduced a new Chapter 9A to its Listing Manual. The new provisions apply to transactions between:

  • an interested person — director, chief executive officer or substantial shareholder of the listed company or an associate of such a person; and
  • the listed company or its subsidiaries and certain associated companies (in which the listed group and its interested person is the largest shareholder ) which are not listed on a foreign stock exchange.

Such transactions include: the provision of financial assistance; the acquisition, realization or leasing of assets; the provision or receipt of services, the issuance of securities; the granting of options; and the establishment of joint ventures or joint investments.

Under the new requirements, which replace the former Clause 1010, interested person transactions which exceed certain threshold values have to be immediately announced and, in certain cases, require the approval of the shareholders of the listed company.

Additional guidelines have also been introduced, in a new Clause 1006(4), specifically covering the sale of units in property projects to interested persons. Such transactions must be reported to the Exchange within two weeks of the transaction, and, if required under Chapter 9A, shareholders' approval must be obtained within six weeks. All such sales are also subject to the review and approval of the listed company's audit committee.

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