ACRA sets up public consultation on Companies Act amendments

The CAWG reviewed 56 issues and recommended 36 legislative reforms.

The Accounting and Corporate Regulatory Authority (ACRA) is looking to get feedback from the public on the proposed amendments to the Companies Act (CA), running from 20 July to 17 August, an announcement revealed.

ACRA had set up a Companies Act Working Group (CAWG) in January 2018 to review several areas of the CA. The review was part of ACRA’s efforts to ensure Singapore’s corporate laws and regulatory framework stay competitive. ACRA also reviewed other requirements in the CA, with a view to streamlining the filing process and updating regulatory requirements.

The CAWG reviewed 56 issues and recommended 36 legislative reforms, covering the digitalisation, types of companies and financial reporting, matters relating to directors and company secretaries, safeguarding shareholders’ interests, share capital and financial assistance and updating outdated provisions.

Some proposed amendments from other reviews include the streamlining and clarifying financial reporting requirements for companies and foreign companies, granting the registrar power to exempt a company from all of the requirements in the Accounting Standards, granting the Minister the power to exempt classes of companies from compliance with any or all of the requirements in the Accounting Standards and allowing foreign companies preparing financial statements in accordance with accounting standards.

The public can access the consultation documents on ACRA’s website and the REACH consultation portal. ACRA will publish a summary of the comments received and will not disclose the identity of the respondents, and will not separately address or acknowledge every comment received.