Division 1 — Creation and regulation of Auxiliary Police Forces
Creation of Auxiliary Police Forces
86.—(1)  The Commissioner may, with the approval of the Minister, authorise the creation by the Government or any statutory body, or by any company or other organisation carrying on business within Singapore (called in this Part the employer), of one or more Auxiliary Police Forces for all or any of the following purposes:
(a)to safeguard life and any property of the employer;
(b)to safeguard life and any property of any other person in Singapore;
(c)to assist the Police Force in the maintenance of law and order and the detention or arrest of individuals that police officers are authorised to apprehend;
(d)to assist any department of the Government or any statutory body in the discharge of any duty imposed or function conferred under any written law;
(e)to carry out such security activity as the Commissioner may approve.
[10/2015]
(2)  The Commissioner may, in authorising the creation of an Auxiliary Police Force under subsection (1), impose any conditions that the Commissioner thinks fit.
(3)  Without limiting subsection (2), the conditions that may be imposed under that subsection in relation to an Auxiliary Police Force include —
(a)restricting the Auxiliary Police Force to carrying out only such security activity as the Commissioner may specify in the authorisation under subsection (1);
(b)requiring that the approval of the Commissioner be first obtained before the Auxiliary Police Force carries out any new security activity in the course of business or for remuneration;
(c)requiring the employer of the Auxiliary Police Force to pay an annual fee of a prescribed amount to the Commissioner; and
(d)where the employer is other than the Government or a statutory body —
(i)requiring at least one-half of the voting shares of the company or organisation to be held by Singapore citizens; and
(ii)requiring the employer to seek the Minister’s approval before any change in the substantial shareholder of the company or organisation occurs.
(4)  The Commissioner may at any time, by written notice to the employer of the Auxiliary Police Force concerned, vary any condition imposed under subsection (2) or impose any additional condition on an employer of an Auxiliary Police Force.
(5)  Before varying any condition or imposing additional conditions on an employer of an Auxiliary Police Force under subsection (4), the Commissioner must notify the employer of the Commissioner’s intention to do so and must give the employer an opportunity to be heard as to why the conditions should not be so varied or the additional conditions should not be imposed, as the case may be.
(6)  Any decision of the Commissioner under subsection (5) in relation to an Auxiliary Police Force does not take effect —
(a)until the 31st day after the date on which the decision is communicated to the employer of the Auxiliary Police Force concerned; or
(b)where an appeal against the decision is made to the Minister under subsection (7), until the appeal has been determined or withdrawn.
(7)  Any employer of an Auxiliary Police Force who is aggrieved by the decision of the Commissioner under subsection (2) or (4) may, within 30 days after receiving notice of the Commissioner’s decision, appeal against the decision in writing to the Minister.
(8)  The decision of the Minister on an appeal under subsection (7) is final.
(9)  The Minister may designate any of the following to hear and determine, in the Minister’s place, any appeals or a specific appeal under this section:
(a)any Minister of State or Parliamentary Secretary for the Minister’s Ministry;
(b)any public officer in that Ministry not subordinate to the Commissioner whose decision is appealed against,
and any reference in this section to the Minister includes a reference to the Minister of State, Parliamentary Secretary or public officer so designated for that appeal.
[10/2015]
(10)  A person, not being an employer of an Auxiliary Police Force authorised by the Commissioner under this section, who —
(a)in the course of any business carries on any security activity; or
(b)advertises or in any way holds out that the person carries on, or is willing to carry on, for remuneration any security activity,
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part of a day during which the offence continues after conviction.
Special features of employer of Auxiliary Police Force
87.—(1)  An employer of an Auxiliary Police Force (other than the Government) must not be merged or consolidated with, or taken over by —
(a)any other employer of an Auxiliary Police Force; or
(b)any other person (not being such an employer),
without the prior written approval of the Minister.
(2)  For the purposes of subsection (1), the Minister may prescribe in the Auxiliary Police Forces Regulations the circumstances under which an employer of an Auxiliary Police Force would be considered to be merged or consolidated with, or taken over by, any other person.
(3)  An employer of an Auxiliary Police Force (other than the Government or a statutory body) must not, on or after 12 October 2004, appoint a person as its chief executive officer unless it has obtained the prior approval of the Commissioner.
(4)  Unless the Minister otherwise approves, the chief executive officer of an employer of an Auxiliary Police Force and at least one‑half of its directors must be citizens of Singapore.
(5)  A chief executive officer of an employer of an Auxiliary Police Force who was appointed before 12 October 2004 is not permitted by the employer to act as such on or after that date unless —
(a)his or her appointment as chief executive officer of the employer was approved by the Commissioner before that date; or
(b)his or her appointment as chief executive officer of the employer is approved by the Commissioner on a written application by the employer made within 6 months after 12 October 2004, or such longer period as the Commissioner may allow.
(6)  Where the Commissioner does not approve the appointment of a person as chief executive officer under subsection (3) or (5), the employer of an Auxiliary Police Force concerned must immediately remove the person from such office.
(7)  This section has effect despite any other written law or of the memorandum or articles of association, or other constitution, of a company.
(8)  In this section —
“chief executive officer”, in relation to a company or an organisation that is the employer of an Auxiliary Police Force, means the person principally responsible for the management and conduct of any type of business of the company or organisation in Singapore, and includes any person for the time being performing all or any of the functions or duties of a chief executive officer;
“director” has the meaning given by section 4(1) of the Companies Act 1967.
Controls over ownership of employer of Auxiliary Police Force
88.—(1)  A person must not, on or after 12 October 2004 —
(a)become a substantial shareholder of an employer of an Auxiliary Police Force; or
(b)if he or she is not a citizen of Singapore, enter into any agreement or arrangement, whether oral or in writing and whether express or implied, to act together with any other person (whether or not a citizen of Singapore) with respect to the acquisition, holding or disposal of, or the exercise of rights in relation to, their interests in voting shares in an employer of an Auxiliary Police Force, of —
(i)where the employer is a company, an aggregate of more than 50% of the total votes attached to all voting shares in the employer; or
(ii)where the employer is an organisation other than a company, an aggregate of more than 50% of the nominal amount of all voting shares in the employer,
without first obtaining the approval of the Minister.
(2)  Subject to subsection (4), a person who —
(a)immediately before 12 October 2004, is a substantial shareholder of an employer of an Auxiliary Police Force must not continue to be a substantial shareholder unless he or she has, within 6 months after 12 October 2004, or such longer period as the Minister may allow, applied to the Minister for approval to continue to be such a shareholder; or
(b)at any time before 12 October 2004, if he or she is not a citizen of Singapore, has entered into any agreement or arrangement referred to in subsection (1)(b) must not continue to be a party to such an agreement or arrangement unless he or she has, within 6 months after that date, or such longer period as the Minister may allow, applied to the Minister for approval to continue to be a party to such an agreement or arrangement.
(3)  The Minister may approve an application made by any person under subsection (1) or (2) if the Minister is satisfied that —
(a)the person is a fit and proper person;
(b)having regard to the person’s likely influence, the employer of the Auxiliary Police Force will or will continue to conduct its business prudently and comply with the provisions of this Act; or
(c)it is in the national interest to do so.
(4)  Any approval under this section may be granted to any person subject to any conditions that the Minister may determine, including but not limited to any condition —
(a)restricting the person’s disposal or further acquisition of shares or voting power in the employer of an Auxiliary Police Force; or
(b)restricting the person’s exercise of voting power in that employer.
(5)  Any condition imposed under subsection (4) has effect despite any of the provisions of the Companies Act 1967 or anything contained in the memorandum or articles of association, or other constitution, of the employer of an Auxiliary Police Force.
(6)  Where the Minister does not approve an application made by any person under subsection (1) or (2), the person must, within such time as the Minister may specify, take such steps as are necessary —
(a)in the case of subsection (1)(a) or (2)(a), to cease to be a substantial shareholder; or
(b)in the case of subsection (1)(b) or (2)(b), to cease to be a party to the agreement or arrangement.
(7)  The Minister may, by order in the Gazette, make any further transitional provisions that the Minister considers necessary or expedient for the purposes of this section.
(8)  Any person served with a written notice of objection under this section must comply with the notice.
(9)  A person who contravenes subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part of a day during which the offence continues after conviction.
(10)  Where a person is charged with an offence in respect of a contravention of subsection (1) or (2), it is a defence for the person to prove that —
(a)he or she was not aware that he or she had contravened subsection (1) or (2), as the case may be; or
(b)he or she has, within 14 days of becoming aware that he or she had contravened subsection (1) or (2) (as the case may be) notified the Minister of the contravention and, within such time as may be determined by the Minister, taken such actions in relation to his or her shareholding or control of the voting power in the employer of an Auxiliary Police Force as the Minister may direct.
(11)  Except as provided in subsection (10), it is not a defence for a person charged with an offence in respect of a contravention of subsection (1) or (2) to prove that he or she did not intend to or did not knowingly contravene that provision.
(12)  For the purposes of this section, a person has an interest in any share if —
(a)he or she is deemed to have an interest in that share under section 7 of the Companies Act 1967; or
(b)he or she otherwise has a legal or an equitable interest in that share except for such interest as is to be disregarded under section 7 of the Companies Act 1967.
(13)  This section applies only in relation to an employer of an Auxiliary Police Force that is a company.
Codes of practice and directives
89.—(1)  The Commissioner may, by publication in the Gazette, issue one or more codes of practice for Auxiliary Police Forces for all or any of the following purposes:
(a)to enable and maintain fair market conduct between Auxiliary Police Forces in Singapore;
(b)to safeguard the interests of consumers of Auxiliary Police Forces services and of the public generally.
(2)  A code of practice may, in particular —
(a)specify the duties and obligations of the employer of an Auxiliary Police Force in relation to its business operations in the armed security industry; and
(b)provide for such fees or charges as may be payable to the Commissioner in relation to any application or request made to it.
(3)  The Commissioner may issue any directive to any employer of an Auxiliary Police Force for all or any of the following purposes:
(a)to ensure the continuity, reliability and security of the provision of security activities and other services by the Auxiliary Police Force;
(b)in the interests of public safety;
(c)to provide guidance in relation to the operation of any provision of this Part or the Auxiliary Police Forces Regulations;
(d)generally for carrying out the purposes and provisions of this Part and for the due administration thereof.
(4)  The Commissioner may —
(a)by publication in the Gazette, add to, vary or revoke any code of practice; or
(b)add to, vary or revoke any directive.
(5)  The Commissioner may exempt, either generally or subject to such terms or conditions as the Commissioner may specify, any person from any provision in any code of practice or any directive.
Compliance with codes of practice and directives
90.—(1)  Every employer of an Auxiliary Police Force must comply with every relevant code of practice and directive issued under section 89(1) and (3), respectively.
(2)  The Commissioner may conduct an investigation if there are reasonable grounds for suspecting that —
(a)any provision of this Part;
(b)any part of any code of practice issued under section 89(1);
(c)any directive issued under section 89(3); or
(d)any condition of authorisation imposed under section 86(2) or (4),
has been infringed, or is being or is likely to be infringed, by an employer of an Auxiliary Police Force.
(3)  Subject to section 89(5), where —
(a)following an investigation conducted under subsection (2), the Commissioner considers that an employer of an Auxiliary Police Force is infringing, likely to infringe or has infringed any provision of this Part or of any code of practice issued under section 89(1), any directive issued under section 89(3) or any condition imposed under section 86(2) or (4);
(b)the employer (other than the Government or a statutory body) has gone into compulsory or voluntary liquidation other than for the purpose of amalgamation or reconstruction;
(c)the employer (other than the Government or a statutory body) has made any assignment to, or composition with, its creditors; or
(d)the public interest or national security of Singapore so requires,
the Commissioner may, in writing and without any liability for compensation, do all or any of the following:
(i)direct that employer to comply with the provision of this Part or of any code of practice issued under section 89(1), any directive issued under section 89(3) or any condition imposed under section 86(2) or (4) or cease infringing that provision, code of practice, directive or condition, as the case may be;
(ii)specify any procedure or action to be observed or taken by that employer;
(iii)require that employer to furnish performance bonds, banker’s guarantees and any other securities for such amounts and on such terms as the Commissioner sees fit;
(iv)require that employer to modify or terminate any agreement, decision or concerted practice or any other conduct in question;
(v)suspend for a period not exceeding 6 months —
(A)the authorisation for the creation of the Auxiliary Police Force under section 86(1); or
(B)any condition imposed under section 86(2) for any security activity carried out by the Auxiliary Police Force;
(vi)revoke —
(A)the authorisation for the creation of the Auxiliary Police Force under section 86(1); or
(B)any condition imposed under section 86(2) for any security activity carried out by the Auxiliary Police Force;
(vii)impose on an employer (other than the Government) a financial penalty not exceeding —
(A)$1 million for each act of infringement (whether continuing or not) of any provision of this Part or any code of practice issued under section 89(1); or
(B)$50,000 for each act of infringement (whether continuing or not) of any directive issued under section 89(3) or any condition imposed under section 86(2) or (4);
(viii)impose such other direction or restriction as the Commissioner considers appropriate.
(4)  A person who, without reasonable excuse, fails to comply with any direction given under subsection (3) shall be guilty of an offence.
(5)  Before the Commissioner does anything under subsection (3), the Commissioner must —
(a)give written notice to the employer likely to be affected by such action by the Commissioner; and
(b)give such employer an opportunity to make representations to the Commissioner.
(6)  If any dispute arises from one or more provisions of a code of practice, the dispute is, where it is so provided in such provisions, to be determined by the Commissioner on the application for that purpose by any aggrieved person to the Commissioner.
(7)  A person who is aggrieved by any act, direction or decision of the Commissioner under subsection (3) or (6) may, within 14 days of the date on which the person is notified of the act, direction or decision, or such longer period as the Minister may allow, appeal to the Minister in the prescribed manner.
(8)  Unless otherwise provided or allowed by the Minister, where an appeal is lodged under subsection (7), the act, direction or decision appealed against must be complied with until the determination of the appeal.
(9)  The Minister may confirm, vary or reverse the act, direction or decision of the Commissioner or give any directions on the matter that the Minister thinks fit.
(10)  The decision of the Minister in any appeal under subsection (7) is final.
(11)  Any financial penalty payable by any person under subsection (3)(vii) is recoverable by the Commissioner as a debt due to the Government from that person; and the person’s liability to pay is not affected by any authorisation under section 86 for his or her Auxiliary Police Force ceasing (for any reason) to be in force.
(12)  The Minister may designate any of the following to hear and determine, in the Minister’s place, any appeals or a specific appeal under this section:
(a)any Minister of State or Parliamentary Secretary for the Minister’s Ministry;
(b)any public officer in that Ministry not subordinate to the decision‑maker whose decision is appealed against,
and any reference in this section to the Minister includes a reference to the Minister of State, Parliamentary Secretary or public officer so designated for that appeal.
[10/2015]
Anti-competitive agreements and conduct
91.—(1)  Subject to this section, the following is prohibited:
(a)any agreement, decision or concerted practice specified in a code of practice issued under section 89(1) which has as its object or effect the prevention, restriction or distortion of competition in, or in any part of, the armed security industry in Singapore;
(b)any conduct on the part of one or more employers of Auxiliary Police Forces which amounts to the abuse of a dominant position in, or in any part of, the armed security industry in Singapore and which may affect the armed security industry within Singapore.
(2)  Subsection (1)(a) applies —
(a)only if the agreement, decision or concerted practice is, or is intended to be, implemented in Singapore; and
(b)whether the agreement, decision or concerted practice is implemented before, on or after 12 October 2004.
(3)  Subject to this section, any agreement, decision or concerted practice prohibited by subsection (1)(a) is void.
(4)  An employer of an Auxiliary Police Force is in a dominant position where, in the Commissioner’s opinion, that employer is able to act without significant competitive restraint from its competitors.
(5)  In considering whether an employer of an Auxiliary Police Force is in a dominant position, the Commissioner is to have regard to relevant matters, including such matters as may be specified in a code of practice issued under section 89(1).
(6)  For the purposes of this section, the Commissioner may, by notification in the Gazette, specify the employers of Auxiliary Police Forces whom the Commissioner considers to have a dominant or non‑dominant position in, or in any part of, the armed security industry in Singapore.
(7)  The Commissioner may, on the application of any employer of an Auxiliary Police Force or on the Commissioner’s own initiative, grant an exemption from subsection (1) in relation to any agreement, decision, concerted practice or conduct.
(8)  An exemption under subsection (7) —
(a)may be granted subject to such conditions or obligations as the Commissioner considers appropriate;
(b)has effect for any period that the Commissioner considers appropriate; and
(c)must be in writing and sent by the Commissioner to the person to whom the exemption is granted.
(9)  An exemption granted under subsection (7), unless previously revoked in accordance with the terms of the exemption or under subsection (10), continues in force for such period as is specified in such exemption.
(10)  The Commissioner may, with the approval of the Minister, on the application of any employer or on the Commissioner’s own initiative —
(a)extend the period for which an exemption granted under subsection (7) has effect or revoke the exemption;
(b)vary or remove any condition or obligation specified in an exemption; and
(c)impose one or more additional conditions or obligations in an exemption.