Disqualified directors cannot set up companies: ACRA
We refer to Mr Teo Kueh Liang’s letter “Tighten business registration process to weed out rogue companies” (Nov 20, TODAY online), where he proposed that ACRA consider implementing more stringent measures to tighten the registration procedures of companies and businesses to weed out potential rogue and unscrupulous vendors.
We refer to Mr Teo Kueh Liang’s letter “Tighten business registration process to weed out rogue companies” (Nov 20, TODAY online), where he proposed that ACRA consider implementing more stringent measures to tighten the registration procedures of companies and businesses to weed out potential rogue and unscrupulous vendors.
There is currently legislation in place to disqualify a company director from serving as such or from taking part in the management of a company if he is convicted for any offence involving fraud or dishonesty, punishable with imprisonment for 3 months or more. This disqualification lasts for 5 years.
Section 154(5) of the Companies Act specifies that persons found to have contravened the disqualification can be fined up to S$10,000 and/or jailed up to 2 years.
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