Legislation Update
New
Acts
Multi-Level
Marketing and Pyramid Selling (Prohibition) (Amendment) Act 2000 (A19/2000)
The
Multi-Level Marketing and Pyramid Selling (Prohibition) Act is amended, with
effect from 1 June 2000, to make the Act more effective in prohibiting
multi-level and pyramid selling schemes and arrangements but, at the same time,
to allow the Minister for Finance to exclude, by order, legitimate schemes and
arrangements from the ambit of the Act. (See ‘Changes to Subsidiary
Legislation’ below.)
The
definition of ‘pyramid selling scheme or arrangement’ is amended to remove
the requirement of the sharing of benefits between participants at different
levels or tiers down the ‘pyramid’, and generally to simplify it. The
definition of ‘commodity’ is also amended for consistency with the new
definition of a ‘pyramid selling scheme or arrangement’.
A
definition of the term ‘benefit’ has also been introduced. The term includes
the purchase of samples not exceeding their cost, and time and effort spent in
pursuit of sales, distribution or recruiting activities.
The
maximum fines prescribed under the Act have been enhanced from $30,000 to
$200,000.
The
new section 11 empowers a court that convicts a promoter or participant of
multi-level marketing, or pyramid selling, scheme or arrangement under section
3(2)s to impose a penalty in addition to any other punishment. The penalty is to
be imposed if the promoter or participant has received any benefit, whether
directly or indirectly, as a result of committing the offence under section
3(2). The penalty will be a sum not exceeding the amount, or the value of the
benefit received by the promoter or participant. The new section 11(1), however,
will not prejudice or affect any person’s right to recover damages from a
promoter or participant.
A
new section 11A will confer jurisdiction on a District Court to try any offence
under the Act or any regulations made thereunder and to impose the full penalty
or punishment in respect of any such offence.
National
Science and Technology Board (Amendment) Act 2000 (A18/2000)
The
National Science And Technology Board (Amendment) Act 2000 amends the National
Science and Technology Board Act for the following purposes:
to
expand the functions of the National Science and Technology Board (‘NSTB’)
to encompass stimulating, encouraging and facilitating development of an
environment conducive to scientific and technological activities, scientific
and technological innovation and commercial application of science and
technology; and
to
expand the powers of the NSTB in order to discharge its expanded functions
including, in particular, a new power to provide or develop, in partnership
with the private sector, incubator facilities for new technology-based
enterprises and business support facilities for growing technology-based
enterprises.
The changes are effective from 1 June 2000.
Political
Donations Act 2000 (A20/2000)
This
Act seeks achieve the following:
to
prohibit the making of donations to candidates in any parliamentary election
or presidential election or to any political party or other political
association by persons and bodies who are not permissible donors. A
‘permissible donor’ is defined as either a citizen of Singapore who is
at least 21 years of age, or a company incorporated in Singapore and doing
business wholly or mainly in Singapore, the majority of whose directors and
members are citizens of Singapore. Unincorporated associations like
societies and trade unions are, therefore, not permissible donors;
to
require candidates and political associations to report large donations
(S$10,000 or more) which they have accepted; and
to
make related amendments to the Parliamentary Elections Act and to the
Presidential Elections Act regarding candidates.
The
Act will come into force on a date to be gazetted.
Chemical
Weapons (Prohibition) Act 2000 (A17/2000)
The
Chemical Weapons (Prohibition) Act 2000 and is operative from 1 June 2000.
This
Act gives effect to the Convention on the Prohibition of the Development,
Production, Stockpiling and Use of Chemical Weapons and on their Destruction.
The Convention was concluded in Paris on 13 January 1993.
The
purpose of the Act is to implement Singapore’s obligations under the
Convention and require every person exercising a power or discretion conferred
under the Act to have regard to those obligations.
Section
8 of the Act provides that the following will be an offence under the Act:
engaging
in the use, development, production, acquisition, stockpiling, retention, or
transfer of a chemical weapon;
engaging
in military preparation using a chemical weapon;
knowingly
assisting, encouraging or inducing another person to engage in any activity
prohibited under the Convention; or
using
a riot control agent as a method of warfare.
The
Act also provides for the extraterritorial application of section 8 in respect
of acts done or omitted to be done outside Singapore by any citizen of Singapore
or any person on board a ship or aircraft registered in Singapore. However, the
sanction of the Public Prosecutor is required before the institution of any
proceedings for an offence under section 8 committed outside Singapore.
New
Bills
National
Council of Social Service (Amendment) Bill 2000 (B18/2000)
This
Bill seeks to amend the National Council of Social Service Act to, inter alia,
empower the Council of Social Service to form incorporated or unincorporated
bodies or organisations, or to enter into joint ventures with other persons or
organisations to carry out any of its objects. In addition, the restriction on
inquiry into the internal management of Council members is removed.
Auctioneers’
Licences (Amendment) Bill 2000 (B17/2000)
This
Bill seeks to amend the Auctioneers’ Licences Act for the following purposes:
to
abolish licensing of persons who carry on the trade or business of an
auctioneer, but without affecting the regulation of auctioneers under other
written laws like the Wholesome Meat and Fish Act 1999 and the Pawnbrokers
Act;
to
change the short title of the Act to the Appraisers and House Agents Act;
and
to
provide that persons who are licensed auctioneers immediately before the
amendments take effect are deemed to be licensed appraisers and licensed
house agents until 31 December 2000. This will obviate any inconvenience
caused to such auctioneers in having to apply for an appraiser’s licence
or house agent’s licence immediately when the amendments take effect.
The
Bill also makes consequential amendments to the Arms and Explosives Act, the
Central Provident Fund Act, the Inland Revenue Authority of Singapore Act and
the Trustees Act.
Housing
And Development (Amendment) Bill 2000 (B16/2000)
This
Bill seeks to amend the Housing and Development Act to achieve the following:
to
confer on the Housing and Development Board (HDB) exclusive use over the
acronym ‘HDB’ and such symbol or representation as it may devise and to
make it an offence for any person to use that acronym, symbol or
representation or one that is so similar as to cause or be likely to cause
confusion;
to
discharge every lessee of any flat in any designated building of the HDB as
well as the HDB from the mutual covenants in the lease prohibiting or
restricting the use of the flat for any trade, business, manufacture or
commercial purpose and from mutual covenants which would impede the
reasonable use of the flat for any commercial purpose. The amendment is to
enable HDB flats to be used as home offices;
to
make it an offence under section 60 for any person (whether or not he is the
purchaser or seller, mortgagor, transferor or transferee) to knowingly make
a false statement to the HDB in relation to the purchase, mortgage, sale or
transfer of a HDB flat;
to
introduce in section 65A a new class of upgrading works known as special
upgrading works, comprising additional lifts and such other works that are
declared to be special upgrading works; and
to
delete the provision that the sanction of the Public Prosecutor is required
before prosecution of offences under the Act may be instituted.
Changes
To Subsidiary Legislation
Multi-Level
Marketing and Pyramid Selling (Excluded Schemes and Arrangements) Order 2000
(S248/2000)
The
definition of ‘pyramid selling scheme or arrangement’ in section 2 of the
Act shall be taken to exclude the following schemes or arrangements:
any
scheme or arrangement comprising insurance business, or any class of
insurance business, so long as every insurer and every insurance
intermediary participating in the scheme or arrangement is registered,
licensed, approved or otherwise so entitled to act under the Insurance Act,
the Insurance Intermediaries Act 1999, or the regulations made thereunder;
any
master franchise scheme or arrangement, or any class of such scheme or
arrangement, whereby a person is given the right to sub-franchise a
franchise, subject to the scheme or arrangement satisfying the conditions in
sub-paragraph (c) (i), (ii) and (iii). ‘Franchise’ has the same meaning
as in section 107(1) of the Companies Act;
any
scheme or arrangement, or any class of such scheme or arrangement, which
satisfies the following conditions: