Shareholders of Singapore Companies

A presentation brought to you by OpenCompanySingapore.com

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What Are Shareholders?

• According to the Companies Act in Singapore, shareholders are the members of a company.

• All Singapore companies are required to have at least one shareholder.

• In a broader sense, a shareholder is the owner of the company. 

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Who Act as Shareholders in Singapore Companies?

• Shareholders are individuals or legal entities that have invested a certain amount of money, a share capital, in order to receive a return of the investment that can take various forms.

• Shareholders in Singapore companies limited by shares are individuals that have subscribed or purchased shares within the company. 

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Shareholders’ Rights in Singapore• Shareholders of Singapore companies

 have certain privileges, among which the right to vote when appointing the board of directors, the right to propose certain resolutions and the right to distribute the company’s income. 

• Shareholders are also entitled to purchase new shares when issued by the Singapore company and the right to remaining assets in case of company liquidation.

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Shareholders’ Powers in Singapore• Compared to the 

Singapore company’s management, shareholders have certain powers.

• Among the powers of Singapore companies’ shareholders are:

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the adoption, alteration or replacement of the company’s Articles of Association;

veto power when it comes to reduction of capital;

in public companies in Singapore, shareholders have the power to remove directors and approve auditors.

Minority Shareholders in Singapore >>• Minority shareholders in 

companies registered in Singapore are generally required to accept the decisions of directors and the majority shareholders.

•  However, they also have certain rights that protect them.

• The rights of minority shareholders are mentioned in the Companies Act, but must also be stated in the Memorandum or Articles of Association of the company.

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>> Minority Shareholders in Singapore

• Foreign investors with a minority stake in a Singapore company usually negotiate specific rights when joining the company.

• The most important rights granted to minority shareholders in the Commercial Code in Singapore are the rights to attend and vote at the general meetings. 

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Shareholder Agreements in Singapore

• Shareholders of companies in Singapore may also draft shareholders agreements that will set out the rules of the relations between them.

• The shareholders’ agreement may include certain rights and obligations of the shareholders additionally to the ones stated in the Memorandum and Articles of Association.

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Assistance in Company Registration in Singapore

• Clients may request the help of our Singapore company formation experts when seeking to open a company here.

• For details about the requirements of setting up a company you can contact our company registration agents in Singapore.

 

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Thank you for your attention!

For more information, please contact us at:

(+44) 203-287 0408 (for international clients)

office@lawyers-singapore.com

www.opencompanysingapore.com10