Regulatory Alerts2005-11-21
Added
Notice 821 Finance Companies' Acquisition of Shares in Companies
The Monetary Authority of Singapore issued Notice 821 to enforce Section 28(1) of the Finance Companies Act, requiring finance companies to obtain prior approval before acquiring 20% or more of any company's share capital. This regulation aims to prevent finance companies from diversifying into inconsistent business areas or making excessive investments by controlling their acquisitions of shares and establishment of associated or subsidiary entities. The approval requirement applies to all acquisitions regardless of the target company's jurisdiction, and the Authority may grant consent subject to specific conditions that must be strictly complied with.
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