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.