Statute Details
- Title: Companies (Prescribed Percentage under Section 76B(3) and (3B)) Notification 2013
- Act Code: CoA1967-S629-2013
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Companies Act (Chapter 50)
- Key Enabling Provisions: Section 76B(3) and (3B) of the Companies Act
- Citation: “Companies (Prescribed Percentage under Section 76B(3) and (3B)) Notification 2013”
- Commencement: 1 October 2013
- Prescribed Percentage: 20%
- SL Number: S 629/2013
- Status: Current version as at 27 March 2026
What Is This Legislation About?
The Companies (Prescribed Percentage under Section 76B(3) and (3B)) Notification 2013 is a short but practically significant piece of subsidiary legislation made under the Companies Act (Chapter 50). Its purpose is to set a specific “prescribed percentage” for the operation of section 76B(3) and (3B) of the Companies Act.
In plain language, the Notification answers a technical question left open by the Companies Act: when section 76B(3) and (3B) refers to a “prescribed percentage”, what percentage should be used? The Notification provides the answer—20%—and it does so with effect from 1 October 2013.
Although the text is brief, the legal impact can be substantial. Prescribed percentages often determine thresholds for statutory triggers, eligibility criteria, or the application of regulatory requirements. For practitioners, the key is not the length of the Notification, but how the 20% figure interacts with the substantive machinery in section 76B(3) and (3B) of the Companies Act.
What Are the Key Provisions?
Section 1: Citation and commencement. The Notification may be cited as the “Companies (Prescribed Percentage under Section 76B(3) and (3B)) Notification 2013” and comes into operation on 1 October 2013. This matters for compliance and for determining which version applies to events occurring before and after the commencement date. For example, if a relevant corporate event or calculation date falls before 1 October 2013, parties may need to consider whether an earlier prescribed percentage applied.
Section 2: Prescribed percentage under section 76B(3) and (3B) of the Act. This is the substantive provision. It states that, for the purposes of section 76B(3) and (3B) of the Companies Act, the prescribed percentage shall be 20%. In other words, wherever section 76B(3) and (3B) requires a prescribed percentage to be applied, the law directs decision-makers to use 20% as the benchmark.
Practical effect of the 20% threshold. While the extract provided does not reproduce section 76B(3) and (3B) itself, the structure of the Companies Act typically uses “prescribed percentage” to define a quantitative threshold. In practice, this means that the legal consequences under section 76B(3) and (3B) will turn on whether the relevant measure (for example, a proportion of shareholding, voting rights, or another percentage-based criterion) reaches, exceeds, or otherwise relates to 20%. Lawyers advising companies will therefore need to map the factual position (ownership structure, voting arrangements, or other relevant metrics) onto the statutory calculation required by section 76B(3) and then apply the 20% figure.
Making and authority. The Notification was made on 30 September 2013 by the Permanent Secretary (Finance) (Performance), Ministry of Finance, Singapore. This indicates the legislative pathway: the Minister for Finance is empowered by section 76B(3) and (3B) to prescribe the percentage by Notification. For practitioners, this is relevant when assessing validity, scope of delegated power, and whether the correct authority has acted.
How Is This Legislation Structured?
The Notification is structured as a very concise instrument with an “Enacting Formula” and two operative provisions.
Enacting Formula. The opening formula records that the Minister for Finance makes the Notification in exercise of powers conferred by section 76B(3) and (3B) of the Companies Act. This is important for understanding the delegation of legislative power and the limited purpose of the instrument.
Provision 1 (Citation and commencement). This is standard in subsidiary legislation: it provides the short title and the date the Notification takes effect.
Provision 2 (Prescribed percentage). This is the only substantive rule. It sets the prescribed percentage at 20% for the purposes of the specified subsections of the Companies Act.
There are no schedules, definitions, or additional procedural requirements in the Notification itself. Its entire function is to supply a single numeric parameter.
Who Does This Legislation Apply To?
The Notification applies to persons and entities whose rights, obligations, or compliance duties are affected by the operation of section 76B(3) and (3B) of the Companies Act. In practical terms, this will typically include companies incorporated in Singapore, their directors, officers, and shareholders (and any other stakeholders) when the statutory provisions in section 76B are engaged.
Because the Notification itself does not directly regulate conduct, its applicability is best understood by reference to the Companies Act mechanism it supports. Whenever section 76B(3) and (3B) requires a prescribed percentage to be applied, the 20% figure in this Notification becomes the governing threshold. Therefore, the “who” is determined by the “when” and “how” of section 76B(3) and (3B)—the Notification supplies the percentage that those subsections require.
Why Is This Legislation Important?
Even though the Notification is only two provisions long, it is important because it provides the numeric threshold that can determine whether a statutory condition is met. In corporate and regulatory law, thresholds often drive outcomes: they may affect whether a company must comply with certain requirements, whether a particular classification applies, or whether a statutory regime is triggered.
For legal practitioners, the key significance is certainty and uniform application. By prescribing 20%, the Notification removes ambiguity and ensures that all parties apply the same benchmark when assessing the relevant percentage-based criterion under section 76B(3) and (3B). This reduces interpretive disputes and supports consistent regulatory and advisory practice.
From an enforcement and compliance perspective, the commencement date (1 October 2013) is also critical. Corporate transactions and reorganisations frequently occur over time, and the relevant percentage calculations may be made at specific dates. Lawyers should therefore confirm whether the relevant event occurred on or after the commencement date and whether any transitional considerations exist in the Companies Act or related amendments.
Finally, the Notification’s “current version as at 27 March 2026” status indicates that the prescribed percentage remains 20% as of that date. Practitioners should still verify whether any later amendments have been made to section 76B or to the Notification itself, but the available information suggests the 20% benchmark continues to govern.
Related Legislation
- Companies Act (Chapter 50) — in particular section 76B(3) and (3B)
- Companies (Prescribed Percentage under Section 76B(3) and (3B)) Notification 2013 (SL S 629/2013)
Source Documents
This article provides an overview of the Companies (Prescribed Percentage under Section 76B(3) and (3B)) Notification 2013 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.