Besides providing guidelines for the incorporation and management of companies, the Singapore Companies Act also contains penal provisions. Rather than ploughing through a rather lengthy and convoluted statute, let the lawyers at Gloria James-Civetta summarize the relevant provisions for you!
| Offence | Criminal Liability |
| Section 156(1) A director’s failure to disclose a conflicting transaction to the board. |
Section 156(10) Fine not exceeding $5,000 or imprisonment for a term not exceeding 12 months. |
| Section 156(5) A director’s failure to disclose potential conflicts arising from holding other offices or possessing property. |
Section 156(10) Fine not exceeding $5,000 or imprisonment for a term not exceeding 12 months. |
| Section 157(1) A director’s failure to act honestly and to exercise reasonable diligence. |
Section 157(3) Fine not exceeding $5,000 or imprisonment for a term not exceeding 12 months. |
| Section 162 When a company (other than an exempt private company) makes a loan to their director (or the directors of their related company) which is not permitted. |
Section 162(4) Fine not exceeding $20,000 or imprisonment for a term not exceeding 2 years. |
| Section 163 A company (other than an exempt private company) makes a loan or enters into any guarantee or provide any security in connection with a loan made to another company by a person other than the first-mentioned company, if a director or directors of the first-mentioned company is or together are interested in 20% or more of the total number of equity shares in the other company (excluding treasury shares). |
Section 163(7) Fine not exceeding $20,000 or imprisonment for a term not exceeding 2 years. |
| Section 339(3) An officer knowingly incurs debts where there is no reasonable expectation of repayment. |
Section 339(3) Fine not exceeding $2,000 or imprisonment for a term not exceeding 3 months. |
| Section 340(1) Any person who was knowingly a party to the carrying on of any business of the company with intent to defraud creditors of the company or creditors of any other person or for any fraudulent purpose. |
Section 340(5) Fine not exceeding $15,000 or imprisonment for a term not exceeding 7 years, or both. |
Need help?
Want to know how to fulfil your statutory duties and to avoid criminal liability? It is recommended that you seek advice from a Criminal Law Specialist in Singapore.
Are you facing potential charges? The trial process is often a mentally draining and challenging experience. You should seek a criminal defence lawyer to help you to present your case to the court in the best way possible. Not having a defence lawyer will put you at a great disadvantage.
