COMPANIES (AMENDMENT) BILL

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, I beg to introduce a Bill intituled "An Act to amend the Companies Act (Chapter 185 of the Revised Edition)".

Bill read the First time.

Second Reading

Mr Speaker: Second Reading, what day?

Mr Hon Sui Sen: Now, Sir.

Certificate of Urgency signed by the President in respect of the Bill, laid upon the Table by the Minister.

Typed copies of the Bill distributed to Members.

Mr Hon Sui Sen: Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Section 196 of the Companies Act deals with the appointment of inspectors to investigate the affairs of a Declared Company. The Bill now before the House seeks to amend this section so as to enable an inspector to inform the Minister of any matters coming to his knowledge as a result of the investigation tending to show that an offence has been committed. The Minister may then take such steps as he deems fit.

Under the law as it now stands, an inspector may only disclose such information to the Minister when he makes his report. The law in Singapore is in exactly the same state as it was in England prior to 1967. When a revised Companies Act was introduced in the United Kingdom in 1967, the corresponding section of the English Act was amended so that now an inspector may, without the necessity of making an interim report, inform the Department of Trade (which is the appointing authority for inspectors in the UK) of matters disclosing the probability that an offence has been committed.

It is with a view to achieving the same result in our laws that the proposed amendment to section 196 of our Companies Act is now before the House. When this Bill becomes law, an inspector may, at any time in the course of his investigation, without the necessity of making an interim report, make disclosures of such matters. Honourable Members will appreciate the importance of this Bill which would enable prompt and speedy action to be taken whenever an inspector whose duty it is to investigate the affairs of a company obtains incriminating evidence in the course of his duties.

Sir, I beg to move.

Question proposed.

2.37 p.m.

Mr Hwang Soo Jin (Jalan Kayu): Mr Speaker, Sir, I am just wondering whether the Hon. Minister would care to inform the House of the reason for the urgency in taking the Bill through all its three stages today.

Mr Hon Sui Sen: Sir, while I did not mention it, I think the reason is perfectly clear. There is now an investigation and I would like to be given information on matters which the inspector may be able to give, because in the course of his investigation he may have come across matters which might suggest that an offence has been committed. This Bill would then enable him to make such disclosure to the Minister without having to make an interim report.

The need of this particular piece of legislation was discovered when in looking through Our Act, in comparison with the English Act, we found that the deficiency in our Act prevented information to be given except by way of an interim report. This we thought was not necessary and, therefore, I felt that this particular Bill should be introduced and taken through all its stages in this House.

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. Hon Sui Sen].

Bill considered in Committee; reported without amendment; read a Third time and passed.