All companies embodied in Singapore are compelled to have at least one director who is ordinarily a dweller in Singapore. Thus, it is significant for business proprietors to be notified of the regulations and procedure to be nominated as a director of a company that is Singapore-incorporated.
Who can be appointed as a Company Director in Singapore?
To qualify for nomination as a director, a person must be:
- A natural person (i.e. a firm itself cannot be nominated as a director); and
- Has full legal capacity (A person lacks ability if he is incapable of creating a judgment because his sense or brain is impaired.)
- At least 18 years old.
What Functions and Strengths do Directors Have?
The particular duties of a Board of Directors would be to oversee the organization by organizing broad policies and setting out approving annual budgets, strategic goals, and assigning and electing key executive officers, such as the Chief Executive Officer.
Under the Companies Act, the Board of Directors may exercise all the strengths of a company, unless the constitution of the company or the Companies Act states that a specific action cannot be performed without shareholder authorization.
Director’s Duties
Directors have to formulate business verdicts and practice their strengths under their responsibilities under the law. Otherwise, they may face civil liability, illegal penalties, and or be subject to expulsion from the company.
How are Directors Appointed in Singapore?
The company’s constitution will usually specify the protocol for appointing company directors. The directors of a company may be appointed by a common resolution passed by the shareholders of the company at a meeting.
An ordinary resolution is a legal judgment passed by at least 50% plurality of the votes at a conference. The resolution would commonly state the nomination (e.g. Independent Non-Executive Director) and the date on which the current appointee is to initiate his duties as a director.
The constitution of the company may give for alternative techniques to elect directors. For example, the constitution of the company states that just the Board of Directors, or some specific shareholders, have the authority to appoint directors.
The company will also require to develop the written consent of the individual and a statement of non-disqualification to act as a director.
Once the director has been appointed in accord with the protocol given for in the company’s constitution, the ACRA has to be informed by the company within fourteen days from the date of appointment.
To do it, log into BizFile+ with the SingPass or CorpPass account, then navigate to the e-service called Changes in Company Information including Appointment or Cessation of Company Officers or Auditors.
The following data about the new selectee will have to be given to ACRA:
- Name
- Identification number
- Appointment
- Residential address
- Nationality
- Contact number and email address
- Appointment date
Once the appointment has been successfully documented with ACRA and the modification has been revised, the director’s authorization would take effect.
Providing the pillar of stability from which our clients’ companies thrive, HeySara strives to give only the best integrity assistance and guidance to companies during and after the company incorporation in Singapore. Know more about how it allows e-signature from the board of directors at www.heysara.com.
