Central Provident Fund (Withdrawals for Purchase of Shares) Regulations 2003

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No. S 169

Central Provident Fund Act

(Chapter 36)

Central Provident Fund (Withdrawals for Purchase of Shares) Regulations 2003

In exercise of the powers conferred by section 77(1)(m) of the Central Provident Fund Act, the Minister for Manpower, after consulting with the Central Provident Fund Board, hereby makes the following Regulations:

Citation and commencement

1. These Regulations may be cited as the Central Provident Fund (Withdrawals for Purchase of Shares) Regulations 2003 and shall come into operation on 1st April 2003.

Definitions

2. In these Regulations, unless the context otherwise requires —

“approved agent bank” has the same meaning as in the CPFIS Regulations;

[S 71/2004 wef 19/02/2004]

“bonus shares” means —

(a)	shares in ComfortDelGro; and
(b)	shares in SBS Transit Ltd, a company incorporated under the Companies Act (Cap. 50),

allotted to a member as bonus issue or scrip dividend arising from his shares in the Company purchased with money withdrawn from the Fund in accordance with the revoked Regulations;

[S 71/2004 wef 19/02/2004]

“CPF Investment Account” has the same meaning as in the CPFIS Regulations;

[S 71/2004 wef 19/02/2004]

“CPFIS Regulations” means the Central Provident Fund (Investment Schemes) Regulations (Rg 9);

[S 71/2004 wef 19/02/2004]

“ComfortDelGro” means the ComfortDelGro Corporation Limited, a company incorporated under the Companies Act (Cap. 50);

“ComfortDelGro shares” means shares in ComfortDelGro allotted to a member in exchange for shares in the Company purchased by him with money withdrawn from the Fund in accordance with the revoked Regulations;

“Company” means the DelGro Corporation Limited formerly known as the Singapore Bus Service (1978) Limited, a company incorporated under the Companies Act (Cap. 50);

“Depository” and “Depository Register” have the same meanings as in section 130A of the Companies Act;

“revoked Regulations” means the Central Provident Fund (Withdrawals for Purchase of Shares) Regulations (Rg 5) revoked by these Regulations.

Registration of shares

3.—(1) Any shares in ComfortDelGro allotted to a member in exchange for shares in the Company purchased by him on or after 1st June 1994 with money withdrawn from the Fund in accordance with the revoked Regulations shall be registered in the Depository Register maintained by the Depository in the name of the member and be charged in favour of the Board in accordance with section 130N of the Companies Act.

(2) Any shares in ComfortDelGro allotted to a member in exchange for shares in the Company purchased by him before 1st June 1994 with money withdrawn from the Fund in accordance with the revoked Regulations shall be —

(a)	registered in the name of DBS Nominees (Private) Limited, a company incorporated under the Companies Act, in the Depository Register maintained by the Depository; or
(b)	registered and charged in the manner provided under paragraph (1).

(3) Subject to this regulation, a member shall not create any security interest in any ComfortDelGro shares.

Sale of shares

4.—(1) Any member who sells any ComfortDelGro shares shall immediately repay to the Board —

(a)	such sums of money as have been withdrawn from the Fund for the purchase of shares in the Company for which such ComfortDelGro shares were allotted; or
(b)	the whole proceeds of sale,

whichever is the less.

(2) Paragraph (1) shall not apply to —

(a)	a member who is entitled to withdraw money standing to his credit under section 15 of the Act; or
(b)	a sale made by the legal personal representatives of a deceased member.

Discharge or transfer where member dies or is entitled to withdraw from Fund

4A. Where a member dies before 19th February 2004, or is entitled before that date to withdraw the sum standing to his credit in the Fund under section 15 or 27 of the Act, the Board may —

(a)	where the ComfortDelGro shares allotted to the member are registered in the Depository Register in the name of the member, discharge the charge in its favour over such shares; or
(b)	where the ComfortDelGro shares allotted to the member are registered in the name of DBS Nominees (Private) Limited, instruct DBS Nominees (Private) Limited to transfer such shares, including any bonus shares, to the member.

[S 71/2004 wef 19/02/2004]

Options for discharge or transfer

4B.—(1) The Board may, by notice given to any member who has been allotted ComfortDelGro shares, require the member to opt within such period as the Board may specify —

(a)	to repay to the Board such sums of money as have been withdrawn from the Fund for the purchase of shares in the Company, which have not been repaid; or
(b)	to authorise the Board to transfer his ComfortDelGro shares to an approved agent bank with which the member has a CPF Investment Account, whether under paragraph (5) or otherwise.

(2) A member who has not exercised an option within the specified period in accordance with paragraph (1) shall be deemed to have opted to authorise the Board to transfer his ComfortDelGro shares in accordance with paragraph (1)(b).

(3) Where the member opts to repay the Board in accordance with paragraph (1)(a), such sums of money as are repaid shall be credited to the member’s ordinary account, and upon full repayment of the sum withdrawn, the Board shall —

(a)	discharge the charge over the member’s ComfortDelGro shares; or
(b)	instruct DBS Nominees (Private) Limited to transfer the member’s ComfortDelGro shares to the member’s Depository account,

as the case may be.

(4) Where the member opts or is deemed to have opted to authorise the Board to transfer his ComfortDelGro shares in accordance with paragraph (1)(b), the Board shall —

(a)	discharge the charge over the member’s ComfortDelGro shares and transfer those shares to an approved agent bank with which the member has a CPF Investment Account; or
(b)	instruct DBS Nominees (Private) Limited to transfer the member’s ComfortDelGro shares to an approved agent bank with which the member has a CPF Investment Account,

as the case may be, whereupon the CPFIS Regulations shall apply to the member in respect of those shares.

(5) For the purposes of paragraph (4), where the member does not have a CPF Investment Account, the Board —

(a)	shall appoint an approved agent bank to open and maintain a CPF Investment Account in the member’s name; and
(b)	where the member is ineligible by reason of any provision in the CPFIS Regulations to open or maintain a CPF Investment Account, may in addition specify restrictions on the member’s use of such account.

(6) Any notice given by the Board before 19th February 2004 containing the options described in paragraph (1) shall be deemed to have been given in accordance with paragraph (1), and any option exercised before that date shall be deemed to have been exercised in accordance with this regulation.

(7) Where a member has opted or is deemed to have opted to authorise the Board to transfer his ComfortDelGro shares in accordance with paragraph (1)(b) and dies before the Board has acted under paragraph (4), the Board shall deal with his ComfortDelgro shares and any bonus shares in accordance with regulation 4A.

[S 71/2004 wef 19/02/2004]

Revocation

5. The Central Provident Fund (Withdrawals for Purchase of Shares) Regulations (Rg 5) are revoked.

Made this 31st day of March 2003.

YONG YING-I

Permanent Secretary,
Ministry of Manpower,
Singapore.

[MM S 3/77 V3; AG/LEG/SL/36/2002/1 Vol. 1]

(To be presented to Parliament under section 78(2) of the Central Provident Fund Act).

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