Less regulatory burden, more flexibility in Companies Act reform

AFTER seven years of review, the most extensive amendments to the Companies Act since its enactment in 1967 have finally been passed.

In October 2007, the finance minister appointed a steering committee, chaired by SID honorary fellow professor Walter Woon, to review the Act. Its brief: provide an effective and efficient regulatory framework that's conducive to setting up and doing business in Singapore.

The committee sought to remove regulatory burdens, promote business flexibility, and clarify the scope and extent of directors' duties. At the same time, it took the opportunity to deal with structural flaws in the Act that had been created by piecemeal amendments over the years.

Several rounds of public consultation followed the committee's proposed amendments, before the Companies Act (Amendment) Bill was passed this October. Here are some of the key changes that promote the twin objectives of removing regulatory burdens and promoting busines…