COMPANIES BILL

Order for Third Reading read.

3.35 p.m.

The Minister for Law and National Development (Mr E. W. Barker): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Third time."

Hon. Members will recall that this Bill, which is comprehensive and far-reaching in its effects, was referred to a Select Committee on the 21st of December last year. Since it has taken one year for it to come back to this House and the memories of some Members may be short, I think it would be of advantage for me to read part of the Explanatory Statement to the Bill:

`The need for an up-to-date Company law has long been felt, as the existing law, which is based upon the English Companies Act of 1929, is now completely obsolete.

Whilst Singapore was a component of Malaysia, it was associated with the drafting of a new Companies Act for Malaysia which took over eighteen months to prepare. The Malaysian Companies Act, 1965, was enacted soon after Singapore was separated from Malaysia and came into operation in April, 1966.

This Bill follows closely the provisions contained in the Malaysian Companies Act, 1965, as it is considered that Singapore's new law relating to companies should not be different from the legislation in force in Malaysia in order to facilitate trade and commercial intercourse with and within this region.'

Sir, the response to invitations for representations was good. Fourteen written representations were received and the Select Committee heard oral evidence from eleven of them. Some of these contributions were valuable and a number of suggestions have been accepted. I will not burden Members of the House with details of the amendments which have been made during the Select Committee stage. These are listed out at pages C8 to C37 of the Select Committee's Report which was tabled in this House on the 7th of December, 1967, as Paper Parl. 11 of 1967. Most of the amendments are drafting amendments, while a number of them have been incorporated as a result of representations made by the Singapore Society of Accountants, the Singapore Association of the Chartered Institute of Secretaries, the Singapore Advocates and Solicitors Society, the Association of Certified Public Accountants, the Singapore International Chamber of Commerce and the Association of Banks in Malaysia. To these bodies and to others who made representations to the Committee, I wish to extend our thanks for their valuable suggestions and assistance.

Mr Speaker, Sir, the amendments as have been made by the Select Committee, while they have gone a long way to refine the Bill, do not substan tially alter the character of the Bill. One Part of the Bill, Part XIII, relating to reciprocal provisions with Malaysia, which authorises the Minister to make arrangements with Malaysia for their extension to Singapore of winding-up orders made in Malaysia and for the extension to Malaysia of winding-up orders made in Singapore, has been deleted. Deletion of this Part is considered necessary as clause 340 of the Bill, which is similar to section 340 of the Malaysian Companies Act, with necessary modifications agreed to be tween Singapore and Malaysia, should meet the reciprocal requirements.

Mr Speaker, Sir, the Bill, as now tabled before this House, incorporates the recommendations of the Select Committee.

Question put, and agreed to.

Bill accordingly read a Third time and passed.