TRUSTEES (AMENDMENT) BILL

Order for Second Reading read. 3.37 p.m.

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

Sir, sections 4 and 7 of the Trustees Act (chapter 40) specify the investments in which trustees are permitted to invest. Section 4 covers investments consisting mainly of "gilt-edged" and other fixed interest securities, while section 7 covers certain types of equities quoted on the Stock Exchange of Singapore.

The definition of "securities" as it now appears in the Act does not specifically cover debentures. There is a doubt as to whether certain financial instruments in the nature of debentures, which are issued by public companies, whose shares are deemed to be trustee securities by virtue of section 7 of the Act, fall within the existing definition of "securities". Such instruments, whether secured or unsecured, are sometimes known as bonds, loan stock, notes or by some other designations.

The Bill now before this House seeks to remove any doubt that the term "securities" as defined in the Act, includes debentures. A definition of "debentures" has also been provided in the Bill to include debenture stock, loan stock, bonds, notes and other documents which create or acknowledge a debt, whether constituting a charge on assets or not.

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 E.W. Barker].

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