Legal Updates

Legislation

Children Development Co-Savings (Amendment) Bill 2006 (B21/2006)

The Children Development Co-Savings (Amendment) Bill 2006 (B21/2006) was introduced in Parliament on 8 November 2006 and passed on 22 January 2007.

 

When the changes take place, section 9 of the Children Development Co-Savings Act will be amended to provide for the extension of paid maternity leave to a female confinements, not with standing that the child is not a Singapore citizen or is not a legitimate child at the time of the child birth, as long as certain other requirements are satisfied.

 

Section 9A of the Act will be amended to set out the eligibility criteria for maternity benefits and the maximum amounts that a female employee is entitled to be paid by her employer. If the child is not a Singapore citizen, or is not a legitimate child, at the time of the child’s birth.

Charities (Amendment) Bill 2006 (B22/2006)

The Charities (Amendment) Bill 2006 (B22/2006) (the ‘Bill) was read a second time and passed in Parliament on 23 January 2007.

 

The key changes that will be made to the Charities Act (the ‘Act’) pursuant to the Bill are as follows:

1      Regulation of institutions of a public character (‘IPCs’) under the Act.

 

2      Expanding the definition of ‘fund-raising appeal’.

 

3      Additional functions, duties and powers of the Commissioner of Charities (the ‘COC’).

 

4      Establishment of a Charity Council.

Regulation of IPCs

 

A new Part VIIIA comprising new sections 40A, 40B and 40C will be inserted in the Act to govern the regulation of IPCs. The regulatory regime for IPCs will be migrated from the Income Tax Act to the Act.

 

These new provisions in the Act will also provide for the appointment of sector administrators who will be carrying out the duties of approving and regulating IPCs for the COC. Central fund administrators who are appointed under the Income Tax Act to administer the regulation of IPCs will be replaced by sector administrators appointed under the Act.

 

There is a transitional provision in the Bill that deems any approval granted to an IPC under the Income Tax Act as an approval under the Act after the Bill comes into force. As such, the tax benefits applicable to the IPC for the remainder of the duration for which the IPC approval was earlier granted under the Income Tax Act will be preserved.

Expanding definition of ‘fund raising appeal’

The Bill will also introduce a revised definition of ‘fund-raising appeal’ that is broad enough to include appeals in any form, whether the appeals are made expressly or impliedly, or whether or not words such as ‘appeal’, ‘fund-raising’ and the like are actually used.

Additional functions, duties and powers of the COC

The new powers that will be granted to the COC include:

1      suspending or removing any trustee, charity trustee, officer, agent or employee of the charity from being a member of the charity (new section 25A of the Act);

 

2      directing any person to apply any property held by or on trust for a charity (even after the charity has ceased to exist or operate) to apply the property properly for the purposes of the charity (new sections 26A and 26B of the Act); and

3      prohibiting, stopping or restricting (by imposing conditions) the conduct of any fund-raising appeal by any charity or person (new section 39B of the Act).

Establishment of Charity Council

The Act will contain a new Part IIA which provides for the establishment and functions of the Charity Council which will be tasked to advise the COC’s office on its regulatory work, in addition to promoting self-regulation and good governance standards in the charity sector.

Monetary Authority of Singapore (Amendment) Bill 2007 (B1/2007)

 

The Monetary Authority of Singapore (Amendment) Bill 2007 was tabled and read for the first time in Parliament on 22 January 2007. It seeks to amend the Monetary Authority of Singapore Act principally:

1      to state the principal objects of the Monetary Authority of Singapore (the ‘MAS’) in carrying out its functions and to update the functions which it performs;

 

2      to state the circumstances under which the MAS may lend to the Government or public authority and subscribe to securities issued by the Government or public authority;

 

3      to enable the board of directors to approve investments of the MAS instead of the President;

 

4      to provide for and clarify various disclosure duties of the MAS;

 

5      to enable the MAS to make regulations to deal with money laundering and terrorism financing; and

 

6      to enable the MAS to approve dispute resolution schemes for the resolution of disputes arising from provision of financial services and to require financial institutions to be members of such schemes.

 

The Bill also makes related amendments to the Currency Act.

 

Elizabeth Wong

Allen & Gledhill