Finance Companies Act

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3 Licensing of finance companies

4 Use of words "finance company"

5 Examination of persons suspected of transacting financing business

6 Application for licence

7 Minimum capital requirements

8 Restriction on opening of branches of finance company

9 Mergers, etc., of finance company

10 Control of takeovers of finance companies incorporated in Singapore

11 Arrangements affecting control of finance company incorporated in Singapore

12 Control of substantial shareholding in finance companies incorporated in Singapore

13 Power of Authority to require finance company that is incorporated in Singapore to obtain information as to beneficial interests in shares of finance company

14 Amendment of constitution of finance company

15 Revocation of licence

16 Effect of revocation of licence

17 Publication of list of finance companies

18 Maintenance of reserve fund by finance companies

18A Maintenance of adequate provision for bad and doubtful debts

19 Restriction on payment of dividends by finance companies

20 Publication and exhibition of audited balance-sheet

21 Information and statistics to be furnished by finance companies

21A Monthly statements of advances, loans and credit facilities

21B Disclosure of interest by directors

22 Acknowledgment of indebtedness

23 Dealings by finance companies and credit facilities and limits

24 Dealing by finance company in its own shares, etc.

25 Restrictions on trade by finance companies

26 Restrictions on investments by finance companies

27 Restrictions on holding immovable property by finance companies

28 Control over finance companies in the acquisition of shares in companies

29 Power of Authority to secure compliance with sections 23, 26, 27 and 31

30 Notices to finance companies

31 Orders by Authority

32 Minimum holdings of liquid assets by finance companies

33 Inspection and investigation of finance companies and production of books, etc.

34 Finance company unable to meet obligation to inform Authority

35 Action by Authority if finance company is unable to meet obligations or is conducting business to the detriment of its depositors or creditors

36 Powers of Authority

37 Duration of control

38 Finance company under control of Authority to co-operate with Authority

39 Remuneration and expenses of Authority and others in certain cases

40 Directors to submit copy of profit and loss account

41 Appointment and duties of auditors

42 Authority to administer Act

43 Prohibition against transacting of financing business on public holidays

46 Memorandum and articles of association of finance company

47 Disqualification of directors of finance company

48 Penalty for offences not otherwise provided for

49 Offences by directors or managers

50 Falsification of books, documents, etc.

51 Holding out as finance company

52 Fiat of Attorney-General

54 Winding up provisions

55 Redemption of securities held by finance company

56 Operation of Act not to affect Companies Act

Finance Companies Act

(CHAPTER 108)

(Original Enactment: Act 43 of 1967)

REVISED EDITION 2000

(30th December 2000)

An Act to license and control finance companies and for matters connected therewith.

[10th January 1968]

PART I

PRELIMINARY

Short title

1. This Act may be cited as the Finance Companies Act.

Interpretation

2. In this Act, unless the context otherwise requires —

“agreement” means an agreement whether formal or informal and whether express or implied;

“auditor” means any person approved by the Authority as a finance company auditor for the purposes of this Act;

“Authority” means the Monetary Authority of Singapore established under section 3 of the Monetary Authority of Singapore Act (Cap. 186);

“capital funds”, in relation to a finance company, means the paid-up capital and published reserves of that company, deduction having been made in respect of any debit balance appearing in the profit and loss account of the company;

“company” means a company incorporated or registered under the Companies Act (Cap. 50) or pursuant to any corresponding previous written law;

“credit facilities” means —

(a)	the granting by a finance company of advances, loans and other facilities whereby a customer of the finance company has access to funds or financial guarantees; or
(b)	the incurring by a finance company of other liabilities on behalf of a customer;

“deposit” means a loan of money at interest or repayable at a premium but does not include a loan to a company or other body corporate upon terms involving the issue of debentures or other securities;

“depositor” means a person entitled, or prospectively entitled, to repayment of a deposit whether made by him or not;

“director” includes any person occupying the position of director of a finance company by whatever name called and includes a person in accordance with whose directions or instructions the directors of a finance company are accustomed to act and an alternate or substitute director;

“finance company” means any company licensed under this Act to carry on financing business, and all branches and offices in Singapore of such a company shall be deemed to be one finance company for the purposes of this Act;

“financing business” means the business of —

(a)	borrowing money from the public, by acceptance of deposits and issuing certificates or other documents acknowledging or evidencing indebtedness to the public and undertaking to repay the money on call or after an agreed maturity period; and
(b)	lending money to the public or to a company deemed to be related to the finance company by virtue of section 6 of the Companies Act (Cap. 50) (referred to in this Act as the related company) on the basis that the public or the related company undertakes to repay the money, whether within an agreed period of time or not, or by instalments,

and includes the business of financing hire-purchase transactions arising out of hire-purchase agreements, as defined in the Hire-Purchase Act (Cap. 125), where the money used, or to be used, for such business is borrowed from the public and such other business as the Authority may prescribe for the purposes of this Act;

“Government securities” has the same meaning as in the Government Securities Act (Cap. 121A);

“officer”, in relation to a corporation, includes —

(a)	a director, secretary or employee of the corporation;
(b)	a receiver or manager of any part of the undertaking of the corporation appointed under a power contained in any instrument; and
(c)	the liquidator of the corporation appointed in a voluntary winding up;

“person” includes a corporation;

“public company” means a company incorporated in Singapore other than a private company;

“published reserves”, in relation to a finance company, means reserves which appear in the accounts of the finance company but does not include any reserves which are represented by the writing down of the value of assets or by provision for the depreciation of fixed assets or which are maintained for any specific purposes;

“share”, in relation to a finance company, means a share in the share capital of the finance company and includes an interest in such a share.

[33/84; 27/94]

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