Singapore recently completed a comprehensive review of the Companies Act and targets to implement changes on it through a rewrite of the Companies Act by end 2013.  Some of the revisions under the new Companies Act are intended to provide greater clarity on the following matters: (a) a person who controls the majority of the directors is to be considered a director; (b) a director may resign by giving the company written notice of resignation unless otherwise provided for in the company’s Articles; and (c) explicit provision for a company to use its share capital to pay for expenses, brokerage or commissions incurred in an issue or buyback of shares.  Additionally, the revised Act would be providing default positions under the Act unless otherwise provided for in the company’s Articles, such as (a) appointment of director can be made by ordinary resolution passed at a general meeting; and (b) a private company may by ordinary resolution remove any director.

The Electronic Transactions Act (ETA) has been re-enacted as of 1 July 2010 to harmonize Singapore’s laws on electronic transactions with international developments, facilitate more effective delivery of e-Government services, and enhance technology neutrality so that Singapore can better respond to the changing and continued developments in security technology.

The Ministry of Finance is preparing to issue new income tax regulations for Islamic finance. The Singapore government has identified three areas where the country can offer its services as a financial center to support the growth of Islamic finance – namely in wholesale banking services, asset management, and capital markets. Singapore will provide additional clarification and detailed explanation of the income tax treatment of further defined Islamic financing through a partnership, project finance and the Interbank placement of funds.