ACRA Issues PD No.1 of 2006 on Changes to Companies Act
The new Practice Direction No 1 of 2006 is to inform the public of the commencement of the Companies (Amendment) Act 2005 (“the Amendment Act”) on 30th Jan 2006, the consequential changes to Bizfile forms, the introduction of new forms in Bizfile and related matters. Some of the amendments include: removal of the concept of par value and authorized capital, reforms in the capital maintenance regime, introduction of treasury shares and amalgamation.
Treatment of Share Capital on or after 30 Jan 2006
On 30 Jan 2006, the Registrar of Companies will adopt as the share capital of the company, the aggregate nominal value of the shares issued by the company which appears in ACRA’s record immediately before 30 January 2006 as the value pursuant to the new section 62B(8). This value will continue to be referred to as the “Issued Capital” in Bizfile records and reports. The term “paidup capital” will continue to be used by ACRA in Bizfile to denote the amount paid on the shares issued.
Companies that have received share premiums and have capital redemption reserves may update these amounts to the share capital using the new form called “Notification of Share Capital under section 62B (7)” within 6 months after 30 Jan 2006 or before confirming their Summary of Returns. No fee will be imposed for lodging this Notification, though penalties may be payable for lodgment made after the 6 months period.
Companies may also add any amount which have been previously called and paid up in the Notification if these amounts have not yet been reported. Upon lodgment, the amount submitted will be added to the company’s issued and paid up capital and the records of the companies maintained by ACRA will be updated accordingly.
The Practice Direction can be found in ACRA's website at www.acra.gov.sg
Treatment of Share Capital on or after 30 Jan 2006
On 30 Jan 2006, the Registrar of Companies will adopt as the share capital of the company, the aggregate nominal value of the shares issued by the company which appears in ACRA’s record immediately before 30 January 2006 as the value pursuant to the new section 62B(8). This value will continue to be referred to as the “Issued Capital” in Bizfile records and reports. The term “paidup capital” will continue to be used by ACRA in Bizfile to denote the amount paid on the shares issued.
Companies that have received share premiums and have capital redemption reserves may update these amounts to the share capital using the new form called “Notification of Share Capital under section 62B (7)” within 6 months after 30 Jan 2006 or before confirming their Summary of Returns. No fee will be imposed for lodging this Notification, though penalties may be payable for lodgment made after the 6 months period.
Companies may also add any amount which have been previously called and paid up in the Notification if these amounts have not yet been reported. Upon lodgment, the amount submitted will be added to the company’s issued and paid up capital and the records of the companies maintained by ACRA will be updated accordingly.
The Practice Direction can be found in ACRA's website at www.acra.gov.sg
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