Singapore Legal Update - October 2016
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03 November 2016
Moratorium Over Singapore Proceedings Against Bermudan Company Granted
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Banks and bond issuers should take note of the recent case of Pacific Andes Resources Development Ltd [2016] SGHC 210 (27 September 2016). The Singapore High Court allowed a moratorium over proceedings in Singapore against a Bermudan company listed in Singapore. Among other things, it held that the fact that the debt obligations it had were governed by Hong Kong or English law was not a bar to the application for a moratorium pursuant to section 210(10) of the Companies Act. Shares Held by Japanese Company that Merged with Another Are Transmitted Not Transferred
JX Holdings Inc v Singapore Airlines Ltd [2016] SGHC 212 (29 September 2016) clarifies how Singapore law will treat mergers of foreign corporations. The issue becomes important when these corporations own assets in Singapore (e.g., shares) as how Singapore law treats the merger will determine whether these assets are effectively transferred and whether stamp duty (if leviable) has to be paid. The case provides comfort that Singapore will respect the foreign law’s characterisation of the merger.
MAS Amends Its FAQs on the Licensing and Registration of Fund Management Companies
Among other things, the amended FAQs clarify that licenced FMCs should not appoint the same audit team for internal and external audit services and that FMCs that provide factual information on investment products managed by it or its related corporations are not engaging in financial advisory activity.