STAMP (AMENDMENT) BILL

Order for Second Reading read.

4.02 p.m.

The Parliamentary Secretary to the Minister for Finance (Mr S. Ramaswamy): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Section 15 of the Stamp Ordinance provides for exemption from payment of stamp duty on any instrument made for the purpose of the transfer of shares in connection with the reconstruction or amalgamation of companies.

This section has been held inapplicable to cases of reconstruction or amalgamation of companies incorporated outside Singapore.

The proposed amendment seeks to extend to foreign companies who reconstruct or amalgamate with companies incorporated in Singapore the same exemption applicable to companies incorporated in Singapore.

This would encourage foreign companies, which have their business interests or the majority of shareholders here, to reconstruct and incorporate in Singapore.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill.-[Mr Ramaswamy].

Bill considered in Committee.

[Mr Speaker in the Chair]

4.04 p.m.

Clause 1 ordered to stand part of the Bill.

Clause 2 -

Amendment made: In page 1, to leave out lines 6 to 14 inclusive and insert -

"by inserting immediately after the fourth line of subsection (7) thereof the following new definition : -

"the expression "company" means a company wherever registered or incorporated;" ".-[Mr Ramaswamy].

Clause 2, as amended, ordered to stand part of the Bill.

Bill reported with an amendment; read a Third time and passed.