Statute Details
- Title: Companies (Prescribed Percentage under Section 76B(3) and (3B)) Notification 2013
- Act Code: CoA1967-S629-2013
- Type: Subsidiary Legislation (SL)
- Legislation Number: S 629/2013
- 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%
- Current Version Status: Current version as at 27 March 2026 (per the legislation portal)
What Is This Legislation About?
The Companies (Prescribed Percentage under Section 76B(3) and (3B)) Notification 2013 is a short but legally significant subsidiary instrument made under the Companies Act. Its core function is to “prescribe” a specific percentage—set at 20%—for the purposes of applying section 76B(3) and (3B) of the Companies Act.
In practical terms, this Notification does not create an entirely new regulatory regime. Instead, it supplies a numerical threshold that the Companies Act uses to determine whether certain statutory consequences are triggered. Where the Companies Act refers to a “prescribed percentage”, the Notification supplies the missing value so that the statutory mechanism can operate with certainty.
For practitioners, the importance of such a Notification is often overlooked because it is brief. However, prescribed-percentage thresholds can be decisive in corporate compliance, governance, and reporting questions—particularly those involving control, significant interests, or other statutory classifications that depend on whether a percentage threshold is met.
What Are the Key Provisions?
Section 1 (Citation and commencement) provides the formal identity and effective date of the Notification. It 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 determining the applicable legal position for events occurring before and after commencement, including whether a company’s assessment under section 76B should use the prescribed percentage from that date.
Section 2 (Prescribed percentage under section 76B(3) and (3B) of Act) 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%. This is the entire operative content of the Notification.
Although the extract provided does not reproduce section 76B itself, the drafting structure makes clear that section 76B(3) and (3B) contain a statutory test that depends on a “prescribed percentage”. Without this Notification, the test would be incomplete or would not have a determinate value. By setting the percentage at 20%, the Notification effectively determines the point at which the statutory consequences in section 76B are engaged.
Made date and formalities. The Notification was made on 30 September 2013 by the Permanent Secretary (Finance) (Performance), Ministry of Finance, Singapore. This confirms that it was issued through the proper delegated legislative process under the Companies Act’s enabling power. The presence of an enacting formula referencing section 76B(3) and (3B) reinforces that the Minister (via the authorised delegate) is exercising a specific statutory discretion limited to prescribing the percentage.
How Is This Legislation Structured?
This Notification is structured in a conventional two-section format typical of many prescribed-threshold subsidiary instruments:
(1) Section 1: Citation and commencement. This section identifies the instrument and sets the date it takes effect.
(2) Section 2: Prescribed percentage. This is the operative provision that sets the numerical threshold—20%—for the purposes of section 76B(3) and (3B) of the Companies Act.
There are no schedules, definitions, or additional procedural requirements in the Notification itself. The legal work for practitioners therefore lies in reading section 76B(3) and (3B) of the Companies Act alongside this Notification to determine how the 20% threshold is used.
Who Does This Legislation Apply To?
The Notification applies indirectly to companies and persons whose corporate circumstances are assessed under section 76B(3) and (3B) of the Companies Act. While the Notification is addressed to the legal system (it is made by the Minister/authorised delegate), its effect is felt by regulated entities because the Companies Act provisions it supports will be applied to them.
In practice, the relevant “audience” will typically include corporate officers, company secretaries, compliance teams, and legal advisers who must determine whether a company meets (or fails to meet) the statutory threshold that depends on the prescribed percentage. Depending on the content of section 76B, this may involve assessments relating to shareholding interests, control thresholds, or other statutory classifications that are triggered when a percentage is met or exceeded.
Why Is This Legislation Important?
Even though the Notification is only two sections long, it can have outsized impact because it sets a bright-line threshold. A prescribed percentage of 20% is not merely a policy preference; it is a legal parameter that can determine whether statutory obligations, permissions, or consequences apply. In corporate law, such thresholds often affect whether a company must treat an arrangement in a particular way, whether certain determinations must be made, or whether certain categories of persons or interests are recognised for statutory purposes.
From an enforcement and compliance perspective, the Notification promotes certainty. Companies can rely on a published, fixed percentage rather than attempting to infer a threshold from legislative intent alone. This reduces ambiguity and helps ensure consistent application across transactions and reporting cycles.
For practitioners, the key practical step is to integrate this Notification into the legal analysis of section 76B(3) and (3B). When advising clients, counsel should: (i) identify the relevant facts that section 76B(3)/(3B) requires to be measured; (ii) calculate the relevant percentage using the Companies Act’s measurement rules (which may include aggregation, attribution, or look-through concepts, depending on how section 76B is drafted); and (iii) compare the result to the 20% threshold prescribed by this Notification.
Because the Notification commenced on 1 October 2013, practitioners should also consider timing. If a relevant corporate event occurred before commencement, the applicable prescribed percentage (if any) at that time may differ. However, the portal indicates the Notification is “current version as at 27 March 2026”, suggesting that the 20% figure remains the operative prescribed percentage in the current legal landscape.
Related Legislation
- Companies Act (Chapter 50) — in particular section 76B(3) and (3B)
- Companies (Prescribed Percentage under Section 76B(3) and (3B)) Notification 2013 — S 629/2013 (this Notification)
- Companies Act subsidiary legislation and related notifications — any instruments that prescribe thresholds or define related concepts used in section 76B
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.