Legislation

Residential Property (Amendment) Bill 2006 (B1/2006)

The Residential Property (Amendment) Bill 2006 (the ‘Bill’) was introduced in Parliament on 16 January 2006. Among the changes proposed, the Bill seeks to amend the Residential Property Act as announced in Parliament by the Minister for National Development on 19 July 2005.

On 19 July 2005, the Minister for National Development, Mr Mah Bow Tan, delivered a ministerial statement on policy changes affecting the property market. The ministerial statement was made following a review in three major areas, one of which related to restrictions on foreign ownership of lands and properties. Specifically, it was announced that foreigners would be permitted to purchase apartments in non-condominium developments of less than six levels without the need to obtain prior approval.

In order to implement this change, s 4 of the Residential Property Act will be amended to allow any foreign person to purchase or acquire any of the following non-restricted residential property:

1   any flat (which is not a landed dwelling-house) that is comprised in a building permitted to be used for residential purposes;

2   any unit in a condominium development; or

3   any unit in an executive condominium.

The following are some of the other key amendments that are proposed in the Bill:

1   Enhanced penalty. Section 23 (residential property not to be purchased or acquired by a citizen or an approved purchaser as a nominee of a foreign person) will be amended by providing a higher penalty for the offence where a citizen or approved purchaser purchases or acquires residential property as a nominee for a foreign person, or where a foreign person appoints a citizen or approved person as his nominee to acquire or purchase residential property. The new penalty will be a fine of up to S$50,000 (currently S$5,000) or imprisonment for a term of up to three years or both.

2   Confiscation orders. A new s 23A will be introduced empowering a court to make a confiscation order in respect of benefits derived by any person convicted of any offence under s 23 if the court is satisfied that such benefits have been so derived. The benefits derived are defined as the value of the estate or interest in residential property held in contravention of s 23 or, if the property is disposed of before conviction, the proceeds of such disposition. The court must make a confiscation order on the application of the public prosecutor, and the new s 23A prescribes the method by which the value of those benefits is to be assessed. Once made, a confiscation order is to be enforceable as if it were a fine. The new s 23A will have no retrospective effect and confiscation orders may be made only in respect of offences committed on or after the Bill comes into operation.

3   Controller of Residential Property to administer Residential Property Act. Section 28A (approval for residential development on land deemed non-residential) will be amended by transferring the administration of the provision from the Controller of Housing to the Controller of Residential Property. Applications by foreign persons who wish to develop their non-residential land for a residential purpose will be required to be made to the Minister for Law through the Controller of Residential Property.

4   Licensed trust company may purchase residential property. Section 33 will be amended to enable a foreign company (which is also a trust company licensed under the Trust Companies Act 2005) to purchase and hold any residential property in trust for beneficiaries who are citizens of Singapore or approved purchasers.

Companies (Amendment) Regulations 2006 (S53/2006); Companies (Filing of Documents) (Amendment) Regulations 2006 (S54/2006); Companies Act (Amendment of Second Schedule) Notification 2006 (S55/2006); Companies Act (Amendment of Eighth Schedule) Notification 2006 (S56/2006)

The following Regulations have been issued and came into force on 30 January 2006. These Regulations were issued to amend the subsidiary legislation issued under the Companies Act pursuant to the commencement of the Companies (Amendment) Act 2005. The Amendment Act came into force on 30 January 2006.

Companies (Amendment) Regulations 2006 (S53/2006)

To introduce the publicity requirements required for the new court-free reduction of share capital processes under ss 78B(1) (for private company) and 78C(1) (for public company).

Companies (Filing of Documents) (Amendment) Regulations 2006 (S54/2006)

To insert new Regulations to introduce new prescribed forms for the new court-free reduction of share capital processes and amalgamation procedures.

Companies Act (Amendment of Second Schedule) Notification 2006 (S55/2006)

To introduce new fees payable to the Registrar of Companies under the Second Schedule to the Companies Act.

Companies Act (Amendment of Eighth Schedule) Notification 2006 (S56/2006)

To amend the Eighth Schedule to the Companies Act that prescribes the content of the annual return of a company having a share capital to take into account the changes made by the Amendment Act.

Elizabeth Wong

Allen & Gledhill